Omnicom-IPG Deal Targets $750 Million Savings, APAC in Focus
The Omnicom-IPG merger will create the world's largest ad group. With a US$750M savings target, APAC faces 3,200 job cuts and agency consolidation before year-end.
Interpublic Group has cut 3,200 jobs globally so far in 2025 and vacated roughly 730,000 square feet of office space as it prepares to complete a US$13.5 billion merger with Omnicom by the end of November, creating the world's largest advertising group by revenue.
The combined entity will surpass WPP with more than US$20 billion in annual revenue and target US$750 million in cost savings through the integration.
In Asia Pacific, the consolidation will merge overlapping agency networks, including McCann Worldgroup (IPG) with DDB and BBDO (Omnicom), raising questions about service continuity and leadership transitions through the first half of 2026.
IPG eliminated 800 positions in the third quarter of 2025 alone. The company vacated 135,000 square feet of office space during the same quarter as part of a restructuring program expected to cost between US$450 million and US$475 million in severance, lease impairments, and integration expenses.
In APAC specifically, IPG cut 800 jobs during the third quarter of 2024, contributing to an 11% year-over-year revenue decline in the region. The company reported a 2.9% organic revenue decline globally in the third quarter due to client losses in retail and automotive sectors, partially offset by growth in healthcare and food and beverage categories.
"We're balancing cost discipline with investments in AI and commerce media," IPG CEO Philippe Krakowsky said in the company's latest SEC filing. At quarter's end, IPG held US$1.45 billion in cash against US$3.04 billion in debt.
Leighton Cosseboom
The merger positions the combined group to compete in Asia's rapidly expanding digital ad sector, where programmatic ad spend is projected to reach US$210 billion in 2025. Southeast Asia's digital economy is expected to surpass US$300 billion in gross merchandise value by 2025, with Singapore's US$29 billion digital economy leading regional AI adoption.
The combined entity plans to integrate Omnicom's Flywheel retail media tech with IPG's Acxiom data capabilities to target the region's growing commerce media sector.
But the consolidation raises concerns about reduced agency diversity for marketing leaders. The merger combines six or more agency networks under one umbrella, potentially creating account conflicts and prompting roster changes among major advertisers.
Industry analysts suggest DDB Asia may face retirement due to brand overlap with IPG's FCB network, though some reports indicate DDB may remain in select markets.
Leighton Cosseboom
Australian regulators cleared the merger despite concerns about creating Asia's largest media buyer, citing retained competition in the market. The deal received approval from the US Federal Trade Commission with new restrictions.
Omnicom CEO John Wren plans to reveal the post-merger organizational structure in January 2026. Marketing and procurement leaders should expect potential changes to service level agreements, account team compositions, and pricing structures as the integration unfolds through the first half of 2026.
The company is currently reviewing its agency brand portfolio, with decisions expected on which networks will continue operating independently versus being consolidated.
The merger completion is scheduled for late November 2025, with full integration activities extending into 2026.
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