WPP, the advertising group, has reported a 71% drop in pre-tax profit to £98m in the first half of its financial year, as clients including carmakers and consumer goods companies reduce advertising spending in response to Donald Trump's tariffs rollout. The company has halved its interim dividend to 7.5p a share and cut its global workforce from 111,000 to 104,000.
Outgoing chief executive Mark Read described the market as the most volatile he has ever seen, noting that many clients are distracted by tariffs and macroeconomic uncertainty. Read will be replaced on 1 September by Cindy Rose, a former Microsoft executive who has been on WPP's board since 2019. Investors hope her appointment will sharpen the company's focus on AI capabilities.
WPP has increased its annual investment in AI to £300m, but faces intense competition from tech companies such as Meta, which is developing AI tools that allow advertisers to create and target campaigns on social media. The company has also lost several major clients, including Coca-Cola's North American media business and Mars's $1.7bn global media planning account.
Last month, WPP cut its revenue and profit forecasts for the year, citing a challenging economic backdrop, which led to a 19% drop in shares. The stock fell a further 4.5% in early trading on Thursday and is down more than half year-to-date.
