WPP to announces £300mn investment strategy
The London-headquartered advertising firm, WPP, has announced plans to invest £300mn (US$378.5mn) into its operations over the next three years.
The company released its new strategy on 11 December, revealing plans to maintain its dividend as cut costs by £275mn ($347mn) per year.
WPP aims to reduce costs by 2021 through the closure of offices and removing jobs that overlap in order to improve growth.
The firm has highlighted intentions in its new vision to become a leader in creativity and technology.
“What we hear from clients is very consistent: they want our creativity, and they want us to help them transform their business in a world reshaped by technology. This is at the heart of what we do,” stated Mark Read, Chief Executive Officer of WPP.
“We are fundamentally repositioning WPP as a creative transformation company with a simpler offer that allows us to meet the present and future needs of clients. This more contemporary proposition has already helped us to win new business, including Volkswagen’s creative account in North America.
“The restructuring of our business will enable increased investment in creativity, technology and talent, enhancing our capabilities in the categories with the greatest potential for future growth. As well as improving our offer and creating opportunities for clients, this investment will drive sustainable, profitable growth for our shareholders.
“We describe our approach as ‘radical evolution’: radical because we are taking decisive action and implementing major change; evolution because we will achieve this while respecting the things that make WPP the great company it is today.”
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