Omnicom to wield axe again in 'structural demolition'

Omnicom has sent shockwaves through its agencies – as well as the wider advertising industry – with a major escalation of its redundancy programme, with plans to double its annual cost-saving targets to $1.5bn (£1.1bn) over the next 30 months, signalling a major period of contraction for the group.

The move comes as Omnicom steps up the integration of Interpublic Group (IPG), with chief executive John Wren telling investors that the company now expects to extract $1bn in savings directly from “labour costs” by 2028.

In addition to the 4,000 redundancies announced in December 2025 immediately following the acquisition, the group now plans to achieve $645m in labour-related savings during 2026 alone.

In a bid to “streamline the structure”, brands including DDB, FCB, and MullenLowe have already been axed or folded into larger networks such as TBWA and BBDO, but it seems this could be just the start. Now, a “strategic reshaping” will see an additional 10,000 people removed from the payroll as Omnicom prepares to sell or exit non-core and underperforming businesses.

Wren confirmed that the “labour-related synergies” would be driven by a combination of corporate consolidation and technological displacement. Beyond removing overlapping roles, the group is aggressively moving towards “near-shore” and “off-shore” outsourcing to lower-cost markets.

Perhaps most significantly, the company is leaning heavily into the “efficiency” promised by generative AI. Wren stated that advancements in automation would continue to eliminate positions, particularly within back-office, administrative, and executional functions.

While Omnicom leadership has sought to reassure the markets that client-facing “professional” roles – which make up approximately 85% of the remaining workforce – are protected, the move will do nothing to calm the nerves of an industry already braced for a so-called “AI apocalypse”.

Forrester’s recent 2026 Marketing Agency Predictions claimed agencies are facing the biggest shake-up in their history, with the rise of technology – especially AI – forcing them to take on a raft of new roles with a significantly reduced workforce.

And, earlier this year, Gartner warned that the industry must finally grasp the “AI nettle” to make 2026 the year when platforms like ChatGPT and Google AI move from the periphery to be embedded in all activity, in a make or break 12 months which is likely to determine whether businesses thrive or die in the data and tech driven marketing era.

Meanwhile, the IPA Agency Census has revealed there has already been a significant cut in staff numbers for the industry, especially on the creative side.

Industry analysts are warning that the scale of the cuts could trigger a period of “ongoing instability” throughout 2026. “This isn’t just a trim; it’s a structural demolition,” said one media consultant. “When you remove 14,000 people and retire brands like DDB, you aren’t just saving money – you are changing the DNA of the industry.”