WPP shares jump following restructuring plans
WPP’s shares on the FTSE 100 rose by around 8% on Tuesday following the announcement of its restructuring plan. CEO Mark Read revealed the plan and scheduled an investor conference for later in the day.
The plan aims to achieve a growth rate of not less than 15% by the end of 2021. To do so, the advertising and public relations company, a member of the “Big Four” group of advertising agencies, will incur restructuring cash costs of £300 million and deliver estimated savings of £275 million over the next three years.
The restructuring will also entail the reduction of WPP’s workforce by 3,500 personnel and the closure or merger of almost 200 offices. This will include the shutting down of 80 global offices and the combination of operations of more than 100 offices with below-average business flows.
WPP traded 5.71% higher at 2:31 pm CET.