Alex Brownsell
Nov 6, 2018

WPP implements hiring freeze

The group had been expected to hire about 2,000 new employees.

Mark Read: wants clients to have easier access to the group
Mark Read: wants clients to have easier access to the group

WPP has instructed its senior leadership to suspend recruitment plans until the new year, according to reports.

The group, which revealed disappointing quarterly results last month, has told managers to postpone new hires until early 2019, Bloomberg reports.

The report cites a memo circulated by group financial controller David Barker on 26 October informing staff that measures must be taken to "try and protect" the company’s long-term health. "We need to take urgent action to stop this now," it added.

WPP, which has 134,000 employees, was understood to be looking to hire about 2,000 people, the report adds, although it is understood that the timing of such a memo in the fourth quarter represents fairly normal procedure. 

A WPP spokesperson told Campaign: "We’ve made it clear there are priority areas for investment for growth, and these will be unaffected." 

It comes after new WPP chief executive Mark Read announced a 1.5% slide in third-quarter revenues. The ensuing slump in share price means the company’s value had more than halved in 18 months, from £24bn to about £11.5bn, according to estimates.

Speaking to Campaign after the figures were released, Read said he will consider grouping agencies together, rather than just merging them, as he seeks to simplify the company.

Read said WPP must face up to the "realities" of its position and the latest results "strengthen our resolve" to shake up the group.

"We’ve got many fantastic people, assets and resources within WPP. We just need to make it simpler and easier for clients to get access to," he said.

Source:
Campaign UK
Tags

Related Articles

Just Published

3 hours ago

Creative Minds: Why Eddy Nazarullah went mad for ads

The creative director at Reprise Malaysia answers 11 of our questions. Learn how his art teacher's husband set his destiny, why he admires Goku (from Dragon Ball) and Rocky, what he fears, and why he hasn't really seen NYC despite going there more than once.

4 hours ago

Weber Shandwick's APAC chairman departs after 17 years

Industry veteran Baxter Jolly will leave to explore professional and personal interests.

7 hours ago

Despite recent controversies, aesthetic diversity ...

SHANGHAI ZHAN PODCAST: Shiseido China’s Carol Zhou says that Chinese women are now more accepting of their own physical features and will be looking to beauty brands to improve them.

7 hours ago

POSB Bank aims to reach kids early with animated tales

The Singapore bank attempts to teach financial literacy with a series of stories created by The Secret Little Agency.