In recent days, the global advertising industry has experienced a significant shake-up with the acquisition of Interpublic Group (IPG) by the U.S.-based multinational advertising conglomerate Omnicom Group Inc. for $13 billion. This milestone deal has propelled Omnicom Group to become the world’s highest-earning advertising company.
Omnicom Group has now surpassed the French advertising giant Publicis Groupe S.A. and pushed the UK-based communication, advertising, and public relations multinational service company WPP Media to the third spot, shifting the epicenter of the global advertising industry back into the hands of the “Mad Men” in Manhattan.
The consolidation of Omnicom Group and IPG, both owning numerous advertising agencies, will result in the closure of some longstanding advertising brands in the industry.
Renowned creative agency DDB, founded in 1949 by advertising master William Bernbach, will merge with the creative marketing agency MullenLowe under Omnicom Group’s TBWA. Additionally, FCB, a classic agency dating back to 1873 and one of the largest global advertising agency networks under IPG, will merge with BBDO under Omnicom Group.
Omnicom Group CEO John Wren announced on Monday that as part of the merger plan, over 4,000 employees will be laid off, primarily focusing on administrative positions, although some leadership roles will also be affected.
This latest round of layoffs comes after both companies announced layoff plans since reaching a deal intent last year. In the first half of 2025, IPG group laid off 2,400 employees, adding to the previous year’s layoffs of around 4,000, totaling 6,400 employees, and reducing the total workforce to approximately 51,000 employees. Omnicom reduced its workforce by 3,000 last year, bringing the total number of employees down to about 75,000.
Wren stated, “Efficiency is reflected in labor and other areas. Anyone who generated revenue before December last year now holds a very advantageous position with us.”
Last week, the deal received approval from European regulatory authorities, clearing the final merger obstacles.
Wren emphasized that the financial benefits resulting from the merger will exceed the previously disclosed $750 million annually to the market. He added that specific details will be announced early next year.
The merger between Omnicom Group and IPG comes at a time when the advertising industry faces increasing competition from large tech companies like Google and Meta, which offer technology and platforms for brand marketing and advertising, severely weakening the role of traditional advertising agencies.
Simultaneously, artificial intelligence (AI) technology enables businesses to produce advertisements faster and cheaper, reducing the value of creative work in advertising and squeezing the space for traditional agencies. This year, Omnicom Group’s stock price in New York has dropped by 17%.
Omnicom Group stated that post-merger, they will leverage AI and technology platform investments to achieve the strongest global competitiveness in media agency field. Core brands like McCann, OMD, FleishmanHillard, Golin, and Weber Shandwick will continue to operate.
The merged group will maintain its existing management structure, with Wren continuing as Chairman and CEO; Philip Angelastro remaining as CFO; and Omnicom Group President and COO Daryl Simm and former IPG CEO Philippe Krakowsky jointly serving as COOs.
Wren noted that despite external predictions of potential talent loss due to the merger, the core team remains intact with no major business loss due to conflicts of interest. He emphasized that the merger is not about “eliminating competitors” but integrating stronger capabilities to meet new customer demands.
“We will have the strongest media capabilities and position globally,” he said. “The merger has brought us tremendous opportunities.”
As the merger progresses, Omnicom Group will enter into a new competitive landscape of “New Generation Advertising,” attempting to reclaim a leadership position in a market dominated by AI and technology.