Global advertising holding company Omnicom Group plans to eliminate more than 4,000 jobs as it absorbs rival Interpublic Group, capping a year-long integration that has already erased roughly 10,000 positions across the combined business, according to regulatory filings and executive comments.
The cuts are part of a sweeping restructuring that will also retire some of the industry’s best-known agency brands and consolidate operations under a smaller set of networks, as the new Omnicom–IPG entity pursues billions of dollars in scale and technology investments to keep pace with rivals and big tech platforms.
4,000 new layoffs on top of earlier cuts
Omnicom chief executive John Wren has told investors and media that more than 4,000 roles will be eliminated as the two holding companies are integrated, largely in overlapping administrative and leadership positions.
According to reporting that draws on recent securities filings, the new round of layoffs follows several earlier reductions tied to the merger process:
- Interpublic cut about 3,200 jobs in the first nine months of 2025.
- Omnicom trimmed around 3,000 roles in 2024 as it prepared for the combination.
- Combined, the latest 4,000-plus layoffs bring total merger-related reductions to roughly 10,000 positions over the past two years, or around 3% of the merged company’s approximately 128,000-strong workforce at the end of 2024.
A spokesperson confirmed to trade press that most of the new job losses are expected to occur by the end of December 2025, although notifications and internal “business update” meetings have already begun across multiple regions.
Landmark merger reshapes agency hierarchy
The workforce reductions are directly tied to Omnicom’s roughly $13–13.5 billion all-stock acquisition of Interpublic, which closed on November 26, 2025, after receiving key regulatory approvals in the United States and Europe.
The deal unites two of Madison Avenue’s “Big Four” holding companies, creating what analysts describe as the world’s largest advertising group by revenue, ahead of Publicis and WPP. Omnicom shareholders hold just over 60% of the combined company, which continues to trade under the Omnicom name and ticker “OMC” on the New York Stock Exchange.
Executives have told investors the merger is expected to deliver at least $750 million in annual cost savings, driven by consolidating corporate functions, technology platforms, and overlapping agency infrastructures. Wren has suggested that the final synergy figure could exceed that initial target.
Historic agency brands folded into a new structure
In addition to head-count reductions, Omnicom is dissolving or combining several long-standing creative and media brands built up over decades under the IPG umbrella.
According to internal announcements and industry reports:
- Creative shops DDB and MullenLowe are being folded into Omnicom’s TBWA network.
- FCB is being absorbed into BBDO, another Omnicom mainstay, effectively retiring the FCB name after more than a century in the business.
- IPG’s media organization, IPG Mediabrands, will lose its standalone identity, with units such as UM, Initiative and Mediahub rolled into a single Omnicom media spine.
- The surviving flagship creative trio in the new structure will be BBDO, TBWA and McCann, with Omnicom positioning them as the backbone of a more centralized, AI-enabled global network.
Ad agency insiders and industry historians have noted that the move effectively writes an “obituary” for brand names that helped define modern advertising, including FCB’s early direct-marketing work and DDB’s celebrated creative legacy.
AI, margin pressure and competition from tech
Omnicom has framed the restructuring as a response to profound shifts in the marketing landscape rather than merely a cost-cutting exercise.
In interviews and investor materials, the company has cited several pressures driving the overhaul:
- Rapid adoption of artificial intelligence in media planning, creative production and measurement, requiring heavy investment in data and technology platforms.
- Intensifying competition from tech giants such as Meta, Google and Amazon, which increasingly offer advertisers end-to-end solutions and automated ad tools without agencies in the middle.
- A need to match or exceed the scale and integrated model of rivals like Publicis Group, whose “Power of One” strategy has been a reference point for holding-company consolidation in recent years.
Omnicom plans to showcase a unified technology platform for the merged group at CES in January 2026, with the first wave of major clients scheduled to migrate to the system during the first quarter, according to Axios.
Employees and clients brace for disruption
While Omnicom has emphasized efficiency and new capabilities, the integration is creating uncertainty for both staff and clients.
Reports from industry outlets and employee forums describe:
- Short, scripted layoff calls between managers, HR and affected staff as local offices implement the global head-count plan.
- Hiring freezes, delayed pitch decisions and anxiety inside creative and media teams as they await clarity on reporting lines and which roles will remain.
- Client concerns in key markets, including India, where at least several major accounts are expected to put their media and creative assignments up for review in 2026 due to fears about service continuity and leadership changes.
One Asia-Pacific trade outlet reported that some marketers feel they “did not sign up for chaos” when they originally hired their agencies, and are now weighing whether to stay through the transition or seek alternatives.
Investor skepticism over holding-company model
Financial markets have so far responded cautiously to Omnicom’s strategy. The company’s shares are down roughly 17% year-to-date, even as management highlights the scale of projected cost savings and the promise of new AI-driven offerings.
Some analysts argue that mergers of this size can deliver near-term margin improvements but do little to address longer-term questions about whether large, people-heavy holding companies can keep up with platform-based competitors whose revenue per employee is many times higher.
What happens next
The most visible changes, agency brand retirements, leadership reshuffles and the initial 4,000 layoffs, are scheduled to roll out through the end of 2025 and into early 2026. Behind the scenes, the harder work of integrating systems, aligning compensation structures and unifying cultures across thousands of employees is expected to take much longer.
For now, Omnicom is presenting the job cuts and brand consolidations as necessary steps toward building a “new Omnicom” with the scale to invest in AI and data at a level individual networks could not sustain on their own.
For employees and clients across the merged group, the coming year will test whether those promised efficiencies translate into a more capable partner – or whether the industry’s largest holding company will find that cutting costs is easier than reinventing its role in a rapidly changing advertising economy.
Key Facts & Details
| Category | Information |
|---|---|
| Company | Omnicom Group (post-merger with Interpublic Group) |
| New Layoffs Announced | More than 4,000 jobs to be eliminated during the latest integration phase |
| Total Job Cuts Since Merger Process Began | Approximately 10,000 combined reductions across Omnicom and Interpublic over two years |
| Merger Value | Approximately $13–$13.5 billion all-stock acquisition |
| Deal Closing Date | November 26, 2025 |
| Estimated Workforce Pre-Merger | Roughly 128,000 employees combined (end of 2024) |
| Projected Annual Cost Savings | At least $750 million in expected “synergies,” per company statements |
| Primary Reasons for Restructuring | Consolidation of overlapping operations, increased AI investment, competitive pressure from major tech platforms, need for unified global systems |
| Agency Brands Being Retired/Consolidated | FCB folded into BBDO; DDB and MullenLowe folded into TBWA; IPG Mediabrands dissolved into Omnicom’s media framework |
| Industry Impact | Creates the world’s largest advertising holding company by revenue; triggers client account reviews in multiple global markets |
| Shareholder Structure | Omnicom shareholders hold slightly over 60% of the merged company |
| Stock Performance (YTD) | Shares down roughly 17% amid restructuring and market caution |
| Technology Roadmap | New unified tech platform to be unveiled at CES in January 2026 |
| Timeline for Job Reductions | Majority of layoffs expected by end of December 2025, with structural changes continuing into 2026 |
Frequently Asked Questions (FAQ)
Why is Omnicom cutting more than 4,000 jobs?
The new round of layoffs is tied to the company’s integration of Interpublic Group, which Omnicom acquired in late 2025. According to regulatory filings and executive statements, most of the reductions stem from duplicative roles, overlapping management structures, and efforts to streamline operations across the merged organization.
How many total jobs have been eliminated since the merger process began?
Across both holding companies, roughly 10,000 positions have been cut over the past two years. That number includes earlier reductions by Interpublic and Omnicom as each company prepared for the combination, followed by the newly announced 4,000-plus layoffs.
When did the Omnicom–Interpublic merger close?
The all-stock acquisition valued at roughly $13–$13.5 billion officially closed on November 26, 2025, following regulatory approvals in the United States and Europe.
What happens to the legacy agency brands under the new structure?
Several well-known creative and media brands are being retired or absorbed. For example, FCB is being folded into BBDO, DDB and MullenLowe are being moved under the TBWA network, and IPG Mediabrands is being integrated into Omnicom’s consolidated media organization. Only a handful of flagship creative networks will remain.
How large is the combined company?
The merged group employed about 128,000 people at the end of 2024. Omnicom shareholders now control a little over 60% of the combined entity, which continues to trade under the Omnicom name.
What cost savings does Omnicom expect?
Executives have projected at least $750 million in annual cost savings from operational consolidation, shared technology systems, and reduced overhead. Analysts believe the final figure may exceed that estimate as integration continues.
Why is Omnicom restructuring now?
The company has pointed to several industry pressures — including rising competition from Google, Meta, Amazon, and other ad-tech platforms — along with rapid adoption of AI tools in creative production and media buying. Omnicom says the merger gives it the scale needed to invest in new technology and data capabilities.
Will clients experience service disruptions?
Some clients are already reviewing their contracts due to concerns over leadership changes, agency consolidations, and potential short-term instability. Industry reports indicate that account reviews are likely in several global markets during 2026.
What is the timeline for the layoffs?
Most affected employees are expected to be notified by the end of December 2025, though internal communications and restructuring actions have already begun in several regions. Broader integration work is expected to continue well into 2026.
How have investors reacted to the merger and cuts?
Omnicom’s shares are down roughly 17% year-to-date, reflecting investor caution about whether the holding-company model can compete effectively with platform-driven digital advertising firms.
What new technology or capabilities is Omnicom promising?
Omnicom plans to introduce a unified AI-enabled technology platform for the merged company. The first details are expected to be unveiled at CES in January 2026, with select clients migrating to the system early in the year.
