Acquisitions and job cuts appear to go hand in hand, and the Omicon layoffs are no different. The ad agency recently completed its acquisition of one of its biggest rivals, Interpublic Group (IPG). As a result, Omnicom is expected to cut approximately 4,000 jobs as part of its post-merger restructuring efforts to restore stability to its ranks. The question of whether an employee from Omnicom or IPG would be cut was on the minds of the combined workforces, but Omnicom CEO John Wren clarified to Axios that the “best person qualified for the particular job was going to be that one that survived into the future.” This leaves employees from both companies susceptible to the cuts, creating company-wide ripples across the united ranks of Omnicom.
The Omnicom layoffs are a result of the company’s acquisition of IPG, and the company is looking to retain the most qualified talent as others are let go. (Image: Pexels)
Omnicom Layoffs Set to Eliminate 4,000 Workers from the Newly Merged Workforce
Omnicom recently completed its $13 billion acquisition of rival IPG, and the groundbreaking news was enough cause for disruption across the industry. The high-stakes acquisition is not only noteworthy for competitors who now face challenges from a towering behemoth, but the impact on employees within these newly merged agencies has also been substantial. Omnicom and IPG were estimated to have about 128,300 employees in their combined labor resources as of 2024, and the layoffs will affect approximately 3% of this number.
With the Omnicom takeover of IPG jobs, 4,000 exits don’t appear as significant in the grand scheme of things, but for each of those employees, opportunities continue to dwindle. Reports also suggest that, in addition to the Omnicom layoffs estimated for the year, around 10,000 workers at various locations could be affected in 2026, while the company reevaluates its operations and shuts down unnecessary investments. As a result, not only are employees left wary of Omnicom’s post-merger plans, but many may have to stay alert in preparation for the changes that are to come.
“This brings together, bar none, the best creative talent throughout the world,” Wren told Axios. “With the number of creative brands and the way that we’re going to manage … we’re going to preserve as best we can the agility on those creative people responding to clients’ and consumers’ needs.“
What Do We Know About Omnicom and IPG’s Post-Merger Structure?
The Omnicom layoffs announced post-acquisition aren’t the first sign of disruption to the headcount. According to reports, IPG has cut 3,200 roles across its operations, and Omnicom similarly eliminated 3,000 jobs before these proceedings. Omnicom also set a “$750 million cost synergy target” in preparation for this shift in its business last year, indicating that the wheels had been churning out employees much before the official deal was set in place.
This leaves Omnicom as the largest advertising agency group globally, with its consolidated annual revenue now exceeding $25 billion. Apart from the layoff reports, Omnicom has also announced plans to shut down some brands like FCB, DDB, and MullenLowe in 2025. Instead, Business Insider reports that the Omnicom Advertising division will operate three creative agency networks, namely BBDO, TBWA, and McCann. The renowned DDB and MullenLowe agencies will be incorporated into TWBA. FCB, owned by IPG, will be merged into BBDO.
The company also announced a comprehensive list of its updated structure and the re-establishment of various divisions, highlighting the numerous changes that employees will need to prepare for.
What Comes After the Omnicom Layoffs?
Omnicom’s high-stakes acquisition isn’t just a bold move for the company but for the industry at large. “Together, we will be the go-to company that shapes how brands grow, people connect, and culture evolves,” Omnicom CEO John Wren said in a statement. The company hopes to offer clients a one-stop solution for all their business needs, rather than having to pick and choose between agencies.
With artificial intelligence now providing the tools businesses need to advertise half-heartedly to their customers, the position that ad agencies hold in the modern world is admittedly shaky. Adapting to new technology and rising competition has been difficult for most businesses to come to terms with, but the impact on advertising has not been discussed as much. Omnicom is no stranger to emerging technology, having invested in an agentic setup to guide parts of its own operations, but adapting to change isn’t a one-time consideration.
After the Omnicom layoffs are completed, the company is looking at orienting 85% of roles towards clients, with 15% managing admin tasks. Reuters reports that the combined Omnicom and IPG structure, with the successive changes, could see financial benefits surpassing $750 million in annual cost savings. These changes to headcount and operations are now a typical identifier of businesses readjusting to the post-AI world, and predictions continue to suggest a similar trend of job cuts in 2026.
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