Omnicom Group has announced that it has laid off a large number of employees and closed down its brands following the acquisition of Interpublic Group (IPG) for $ 13.5 billion. The executives attested that the firm will eliminate over 4,000 jobs as part of a comprehensive restructuring strategy related to the merger of the two organisations. The shift is a manifestation of the transformation of the advertising industry as companies operating within the agencies have been redefined by automation and AI-based tools.
Chief Executive John Wren clarified that the job reductions will be primarily in the administrative field and a few leadership positions. He further believed that the company would save approximately $750 million in 2010, which supports Omnicom's goal of streamlining its operations and consolidating overlapping functions that arose as a result of the merger.
According to market reports, the Omnicom layoffs are occurring at a time when the global marketing services industry has undergone rapid change. Increasing numbers of advertisers are turning to AI-inspired platforms to facilitate the creative production process, allowing brands to scale their campaigns. This has reduced the need for labor-intensive processes in traditional agencies.
Wren pointed out that the merger is a reflection of similar actions in the industry. The competitor networks, such as WPP Media, with its new leadership, have already begun internal restructuring. The plan by Omnicom is based on cost measures previously launched by IPG, which resulted in the reduction of over 3,200 positions during the first three quarters of 2025.
According to industry analysts, agencies face persistent pressure to adopt new models of production, with key functions being automated through digital platforms. The new Omnicom-IPG organization is attempting to align its labor force with this dynamic setting without compromising its ability to serve key customers.
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The acquisition forms the largest advertising group in the world, with an estimated annual revenue of $25 billion. The merging company is currently owned by Omnicom shareholders, who own 60%. The new entity has a broad range of creative, media, and digital networks across the world's markets.
In India, the joint venture is the second-largest advertising and media group. Omnicom has already acquired the media component of its business, which includes buying, planning, and investment processes, and IPG has acquired networks in the form of FCB, McCann, MullenLowe, and Mediabrands. The merger would have some effects on the competitive dynamic, particularly in markets where both firms have a strong regional presence.