Omnicom Shuts Three Legacy Agencies and Cuts 4,000 Jobs After IPG Deal
Workforce cuts across the merger may reach 14,000 jobs, as both groups push deeper cost optimization.
Omnicom Group completed its US$13.5 billion acquisition of Interpublic Group on November 26, 2025, immediately retiring three historic agency brands (DDB, FCB, and MullenLowe) and cutting 4,000 jobs as it consolidates into the world's largest advertising company with US$25 billion in combined revenue.
The restructuring folds the legacy agencies into three global creative networks. FCB, founded in 1873, merges with BBDO. DDB integrates with TBWA. MullenLowe joins McCann.
The 4,000 immediate job cuts represent 3% of the combined workforce and target primarily administrative roles, though some leadership positions are affected. Omnicom stated that 85% of its workforce will now hold client-facing roles, with just 15% in support functions.
Total workforce reductions across the integration and planned agency disposals may reach 14,000 positions, an 11% cut from the pre-merger headcount of 128,200. Final staffing is expected to settle near 105,000. IPG had already vacated 730,000 square feet of office space ahead of the merger as part of cost optimization efforts.
Leighton Cosseboom
Omnicom CEO John Wren said, "I am proud to welcome the people, agencies, and clients of Interpublic to Omnicom and create a global community of the best and brightest professionals in the industry, all of whom will have access to the most advanced AI tools and Omni, our advanced intelligence platform."
Asian operations maintain leadership continuity despite the global restructuring. Sean Donovan continues leading Omnicom Advertising across the region, while Tony Harradine retains his role as media CEO.
The merger creates a combined entity operating six media networks: Hearts & Science, Initiative, Mediahub, OMD, PHD, and UM. Florian Adamski was named CEO of Omnicom Media, overseeing these brands plus data firm Acxiom. Duncan Painter leads the Omni and Flywheel Commerce Network.
India's regulatory approval in June 2025 proved critical for maintaining global delivery capabilities in creative and media operations, given the country's role as a major service hub.
Leighton Cosseboom
Omnicom expects to achieve US$750 million in cost savings through system consolidation and operating cost reductions. The company aims to offset integration expenses through these efficiencies while maintaining service quality for clients.
However, the merger comes amid flat organic growth. Omnicom posted 3% growth in 2025 while IPG declined 3.3%, suggesting integration challenges in key markets despite the scale advantages.
The combined agencies won 3,178 industry awards between 2022 and 2025. Yet the brand consolidation raises questions about potential account conflicts and service delivery changes for Asian clients.
For CMOs, CFOs, and procurement leaders in Asia Pacific, the restructuring signals potential shifts in staffing models, commercial terms, and account management. The emphasis on client-facing roles may affect service structures, while the brand consolidations could trigger account realignments where clients previously worked with multiple networks, now folded into single entities.
More immediately, the merger creates questions about service level agreements and rate card negotiations heading into the first half of 2026, as the merger unfolds.
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