Omnicom to Lay off 4000 Employees and Shut Down Agencies

Omnicom Group is preparing to cut more than 4,000 jobs and close several long-standing advertising agencies following its acquisition of Interpublic Group (IPG), according to a Financial Times report cited by Reuters. The restructuring comes just months after Omnicom completed its $13 billion takeover of IPG, making it one of the largest mergers in the advertising industry in recent years. 

The consolidation plan involves folding or shutting down several of the sector’s most recognisable agencies. DDB Worldwide and MullenLowe Global are expected to be absorbed into TBWA Worldwide, while the iconic FCB network will reportedly be merged into BBDO. These closures mark a significant reshaping of the traditional advertising holding-company model, where multiple networks have historically operated in parallel under the same parent.

Omnicom had earlier projected around $750 million in annual cost savings from the IPG acquisition, but the new restructuring push suggests the company expects even greater financial benefits. As advertising shifts toward digital-first strategies and AI-driven creative tools, legacy agency networks have come under increasing pressure to adapt or consolidate. The latest move is seen as Omnicom’s attempt to streamline duplicated functions and reallocate resources toward high-growth, tech-driven areas of the business. 

Industry observers say the layoffs and agency closures highlight a deeper structural transition underway in global advertising, where traditional creative networks are giving way to integrated platforms built around data, automation, and AI-based campaign tooling.