IPG lays off 2,400 ahead of Omnicom merger

Besides, the agency has reduced the base salaries and other benefits of existing employees by about 10-12 percent

by e4m Staff
Published: Aug 7, 2025 4:21 PM | 2 min read

In a significant move tied to the ongoing restructuring and its upcoming merger with Omnicom Group, Interpublic Group (IPG) has laid off 2,400 employees globally since the start of 2025—roughly 4.5% of its workforce—according to its latest filing with the US Securities and Exchange Commission (SEC).

The reductions occurred in two waves: 1,500 roles were eliminated in Q1, followed by another 900 in Q2 ending June 30. The cuts have impacted executive, regional, and account management teams, along with roles in creative, media production, and administrative functions.

These layoffs form part of a broader cost rationalisation initiative led by CEO Philippe Krakowsky, first announced during the company's February earnings call. At the time, Krakowsky said the restructuring was expected to generate $250 million in savings during 2025, separate from the $750 million in synergies projected from the pending merger with Omnicom.

This round follows a deeper workforce trim in 2024, when IPG reduced its headcount by 4,100.

Besides, the agency has reduced the base salaries and other benefits of existing employees by about 10-12 percent, it said in the filing.

In the first half of 2025, the staff cost ratio dropped to 67.0%, compared to 69.4% in H1 2024.

“Total salaries and related expenses for the first half were $2.79 billion, a 10.8% decrease year-on-year, primarily driven by reductions in base salaries, benefits, tax, severance, and temporary help, partially offset by an increase in performance-based compensation,” the company stated.

The job cuts reflect continued pressure on holding companies to streamline operations amid muted growth and the operational complexities of large-scale M&A. IPG’s largest markets, the U.S. and U.K., were among the hardest hit in last year’s layoffs.

Meanwhile, Omnicom, led by CEO John Wren, has not yet disclosed updated workforce figures in its Q2 2025 earnings. In 2024, Omnicom reduced its workforce by 3,000, ending the year with 74,900 employees.