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Restructuring at GroupM US may affect up to 45% of its staff, according to exclusive reports

CEO of GroupM North America, Sharb Farjami, announced during a company meeting on Friday afternoon that approximately 40% to 45% of the overall workforce would be affected by a broad organizational restructuring, as heard in a leaked all-hands recording obtained by ADWEEK.

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GroupM North America's CEO, Sharb Farjami, announced during a company meeting on Friday afternoon...
GroupM North America's CEO, Sharb Farjami, announced during a company meeting on Friday afternoon that approximately 40% to 45% of the company's total workforce will be affected due to a significant organizational overhaul, as reported by ADWEEK through a leaked recording of the all-hands meeting.

Restructuring at GroupM US may affect up to 45% of its staff, according to exclusive reports

Rewritten Article:

Tidal Wave of Change Hits GroupM: Layoffs Galore and a Brand-New Structure

In a shocking turn of events, GroupM North America, a key player in the media investment division of WPP, announced a sweeping organizational overhaul that's set to rock the boat. A whopping 40-45% of their workforce is on the chopping block, according to an internal memo rippling through the company.

Sharb Farjami, CEO of GroupM North America, broke the news to employees during a live town-hall meeting on Friday afternoon. "This has been one hell of a week," Farjami admitted, "and it's been destabilizing for many."

When asked what 'impacted' meant, GroupM spokesperson wouldn't mince words: "It means we're letting go of about 40-45% of our U.S.-based employees," the spokesperson confirmed. "We've got some tough decisions ahead as we streamline our processes and eliminate unnecessary duplication."

Gone are the days when agency brands operated as distinct business units. According to agency leadership at the town-hall, the shifts are a part of a broader plan to shift to a "single operating model" across GroupM North America. The revamped department Media Management and Delivery (MMD) will now absorb investment, Nexus, and campaign reporting functions into a unified powerhouse. But the leaders failed to clarify whether the affected roles would be layoffs, reassignment, or something else.

As for the agency brands, they're not going away entirely. Yet, they'll no longer operate as standalone business units. Instead, they'll serve as homes for clients, a move aimed at fostering a client-centric approach.

GroupM employees can expect a follow-up email detailing the nitty-gritty, along with a questionnaire they can fill out for their thoughts and concerns. The shake-up comes hot on the heels of ADWEEK's earlier report that layoffs had started at the media network earlier this week, five days after the agency reportedly rebranded from GroupM to WPP Media.

The meeting reiterated key details from a leaked memo sent by GroupM CEO Brian Lesser on Monday. In his memo, Lesser outlined changes such as the shift to a single operating model, agency title restructuring, and the integration of Nexus and investment functions.

Following the town-hall, Farjami sent a note to employees acknowledging the challenges and offering support. He emphasized the need for employees to reach out to their managers or the People team for guidance and to continue asking questions or share feedback.

"This won't be easy," Farjami told his team, "but we're in this together. We'll grow into this change together, and I'll keep you updated as we move forward."

Correction 5/9 at 6:25pm ET: The headline has been changed to indicate that U.S. staffers are affected by the change.

Insights:

  • GroupM is undergoing significant changes in North America and EMEA regions, involving potential layoffs, restructuring, and organizational changes to streamline operations and reduce duplications.
  • The company is shifting towards a single operating model, eliminating agency-specific titles in various markets, and focusing on a more client-centric approach.
  • There are speculations of a potential rebranding of GroupM to WPP Media, with a primary goal to strengthen collaboration with WPP's broader capabilities, leveraging AI and data analytics more effectively.
  1. GroupM North America is reportedly integrating various functions, such as investment, Nexus, and campaign reporting, into a unified department named Media Management and Delivery (MMD), in a bid to streamline processes and eliminate unnecessary duplication.
  2. Sharb Farjami, the CEO of GroupM North America, confirmed that the agency is transitioning to a "single operating model" across the region, which eliminates agency-specific titles in various markets and focuses more on a client-centric approach.
  3. According to the internal memo circulating in the company, approximately 40-45% of the U.S.-based employees of GroupM North America are set to lose their positions, as part of the organizational restructuring aimed at reducing duplication and streamlining the company's processes.
  4. GroupM employees can anticipate receiving a follow-up email, which will contain details about the upcoming changes and include a questionnaire for them to share their thoughts and concerns about the transformation.
  5. The rumored rebranding of GroupM to WPP Media could be a significant step in fostering closer collaboration with WPP's broader capabilities, allowing the company to leverage AI and data analytics more effectively within the finance, business, and industry sectors.

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