Post-IPG deal, Omnicom splashes US$1.1b on restructuring
John Wren, Omnicom
Omnicom shelled out US$1.1 billion (A$1.56 billion) in severance and “repositioning” costs in the immediate aftermath of closing its IPG Mediabrands acquisition, its most recent earnings reveal.
The global advertising giant incurred the mammoth sum during the fourth quarter ending December 31, 2025, having allocated just a tenth of that amount in the previous nine months of the financial year.
The filings come two months after Omnicom announced it would cut 4,000 jobs globally and retire brands including DDB, MullenLowe, and Porter Novelli as it consolidated its US$13 billion purchase of IPG.
Speaking on the earnings call, Omnicom chairman and CEO John Wren said: “We expect to execute the remaining sales and exits over the next 12 months.
“Our retained portfolio of businesses generated revenue of $23.1 billion for the 12 months ended September 30th, 2025.
Omnicom did not officially disclose its global organic growth in the quarter, but regional results show bumper 12.3% growth in Asia Pacific for Q4, and 4.2% for the full year.
During the earnings call, CFO Phil Angelastro indicated that organic growth would have been around 4% under normal circumstances, boosted by recent client wins including American Express, Bayer, BBVA, BNY, Clarins, Mercedes, and NatWest.
Of the planned dispositions, around 40% of the revenue set for sale comes from its experiential offerings, including global agency Jack Morton, while a further 25% comes from its advertising arms.
For the full year, Omnicom reported revenue of US$17.3 billion and a net loss of US$54.5 million.
During the earnings call, Wren added that Omnicom’s new business portfolio “positions [its] to drive stronger growth and deliver measurable business outcomes for our clients.
“Our integration planning enabled us to identify significantly greater synergies than we had initially communicated at the announcement of the IPG acquisition.”
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