WPP's Creative Agency Ogilvy Restructures With AI

WPP's creative agency Ogilvy is cutting around 700 jobs as part of a restructuring plan focused on AI integration and operational changes. The cuts represent approximately 5% of the agency's 14,000-strong workforce.

The move could show how marketing agencies are responding to pressure from AI tools that can automate campaign production. Ogilvy says the restructuring is designed to integrate WPP Open, the holding company's AI platform, across its operations.

"Ogilvy is sharpening its edge by streamlining our global operations and further integrating WPP Open, our powerful AI platform, across every facet of our business," an agency spokesperson says. "This strategic evolution, while requiring some tough but vital changes, is designed to empower our teams, boost our creative effectiveness and ensure we continue to deliver unparalleled excellence for our clients in today's rapidly evolving market."

The restructuring affects roles in strategy and production departments. The agency is also dissolving its global diversity, equity and inclusion team.

AI platform changes operations

WPP Open and other gen AI tools are changing how agencies produce marketing campaigns. The technology can speed up processes that previously required larger teams.

Job categories once considered secure are now being reassessed as agencies integrate AI into their workflows. This could mean marketing roles need different skills than they did before automation became standard practice.

Ogilvy's restructuring reflects what other agencies are doing across the sector. The move suggests financial pressures are prompting marketing organisations to reduce headcount while increasing reliance on technology platforms.

Agencies are attempting to balance cost reduction with maintaining service quality for clients. The challenge is whether AI tools can replace the strategic thinking and creative insight that human marketers provide.

DEI structure moves regional

Ogilvy is also eliminating the global head of DEI position. Tope Ajala, global head of inclusion and impact, who has led the role since 2021, will move to an advisory position.

Programmes that Ajala developed, including belonging training and leadership initiatives, are being transferred to regional teams. The agency says it remains committed to inclusion but is changing how it delivers these programmes.

"The agency's commitment to inclusion, culture and bringing diverse thinking to clients hasn't changed," the spokesperson says. The approach aims to empower regional and local inclusion leads, with continued support from WPP's global inclusion team, ensuring "that Inclusion & Impact programs are tailored to each market's culture and needs."

This change follows similar moves by Publicis Groupe and Interpublic Group, which have also restructured their DEI operations. The shift to regional models could offer flexibility but may reduce consistency across global operations.

Marketing sector adapts structure

Cost efficiency is becoming more important as clients demand value and AI tools offer alternatives to traditional processes.

Localised DEI approaches may help agencies adapt programmes to different markets. However, the move away from centralised oversight could make it harder to maintain accountability across regions.

Marketing agencies are navigating questions about workforce composition as technology changes what roles are needed. The balance between financial management and maintaining diverse teams will affect how agencies compete for clients and talent.