# WPP axes jobs in cost-cutting efforts to drive profit recovery

By Russ Mould — 2026-08-06

After advertising and marketing giant WPP cut more jobs over the first half of 2026 in a bid to drive a recovery in profits amid a growth in firms using artificial intelligence (AI), Russ Mould – investment director at AJ Bell – says investors are welcoming signs of progress.

He said: “When you are as beaten up as WPP is, it doesn’t take much more than some glimmers of hope to shift the market narrative. The first-half results provided enough of these to spark the share price into life.

“Revenue is still under pressure and there is continuing churn in accounts but profit came in materially ahead of expectations as CEO Cindy Rose’s cost cutting measures take effect.

“Like her predecessor Mark Read, Rose is looking to streamline a business which has more moving parts than Big Ben. It’s early days but investors are welcoming signs of some progress on this front as the company continues to economise and progress asset disposals.

“Revenue falling less slowly wouldn’t ordinarily be a cue to get the party poppers out but it at least suggests management are starting to stabilise the business.

“Rose will be aware more is required to win back investors who have abandoned WPP in droves in recent years – particularly as its problems cannot just be ascribed to a difficult market with rivals like Omnicom and Publicis still chalking up growth in spite of the uneven backdrop.

“She must also convince a sceptical audience that WPP can be a beneficiary of AI, rather than a victim of the disruption it can cause.

“But today’s update has at least given shareholders something to cling on to as they wait for these bigger problems to be addressed.”

Canonical: https://experts.pressassociation.com/expert/6/views/b4b24eb1f638551f