Omnicom Plans 4,000 Job Cuts and Agency Closures After IPG Deal

Omnicom Group is preparing to lay off more than 4,000 employees and shut down or consolidate several well-known advertising agencies following its acquisition of Interpublic Group, according to a Financial Times report cited by Reuters.

The changes come just months after Omnicom completed its $13 billion purchase of IPG, one of the largest mergers the advertising industry has seen in recent years. The restructuring signals a major shift in how the company plans to operate its expanded portfolio.

As part of the consolidation, Omnicom is expected to fold DDB Worldwide and MullenLowe Global into TBWA Worldwide. The long-established FCB network is also reported to be merging into BBDO. For an industry that has long relied on multiple agency brands operating side by side under the same holding company, these moves represent a significant break from tradition.

Omnicom had previously estimated that the IPG acquisition would deliver around $750 million in annual cost savings. The scale of the current restructuring suggests the company is pushing to unlock even greater efficiencies by removing overlapping roles, systems, and agency structures.

The timing reflects broader changes in the advertising business. As brands shift more of their spending toward digital-first campaigns, data-led planning, and AI-supported creative tools, legacy agency networks are facing growing pressure to evolve. Maintaining multiple global networks with similar capabilities has become harder to justify in an environment focused on speed, technology, and measurable outcomes.

Industry analysts see Omnicom’s move as part of a deeper transformation underway across global advertising. Traditional agency models are increasingly giving way to more integrated platforms that combine creativity, data, automation, and technology under fewer, more streamlined structures.