Dive Brief:

• WPP CEO Mark Read will retire at the end of December after seven years at the helm of the world’s largest ad-holding group, according to an announcement posted by the company’s board Monday.  
• Read will work with the board to find a successor, the executive said on his LinkedIn. He called out WPP’s ongoing work around data and artificial intelligence-driven transformation while acknowledging that the current business environment is “challenging.” 
• Whoever takes over the CEO spot has a tall order to fill. WPP has contended with a number of painful client losses and spending pullbacks and is in the midst of significantly overhauling some of its most important assets, including WPP Media, formerly GroupM.

Dive Insight:

Read took on the mantle as CEO of WPP seven years ago after the contentious departure of Martin Sorrell, an executive who, over the course of decades, shaped what was once a wire basket company into a sprawling advertising empire. As the successor to an industry titan, Read’s tenure has not been short on incident, with challenges including the COVID-19 pandemic, periods of global unrest, inflation and the advent of generative AI. Announcing his departure, the agency chief touted his efforts to make AI a central piece of WPP, including through the broader implementation of the Open operating system this year. 

“The progress our teams have made has been superb and when I ‘demo’ WPP Open to our clients they are always amazed by what it can do,” wrote Read, who spent more than 30 years at WPP in total, in his LinkedIn note.

Still, WPP’s performance has lagged compared to peers, dragged down by a raft of large client losses and sharper spending pullbacks in markets like China. Revenue less pass-through costs declined 2.7% on a like-for-like basis to 2.48 billion pounds, or about $3.2 billion, in Q1 2025. Discussing the quarterly results earlier this spring, Read cautioned that tariffs could further impact brands’ appetites for advertising.

In an attempt to turn its fortunes around, WPP has enacted some dramatic moves of late. In April, it acquired data collaboration platform InfoSum to further evolve its capabilities beyond legacy identity solutions built on technology like cookies. Earlier this month, it formally rebranded GroupM, its media investment arm, to WPP Media. The change is expected to impact 40% to 45% of the unit’s workforce. Paramount, a longtime client, suddenly cut ties with the group last week amid plans for a merger with Skydance Media, Deadline reported, another blow to a business that is trying to turn a new leaf. Some of Read’s policies have also proven controversial with employees, such as a four day return-to-office plan that had a haphazard rollout earlier this year.

For some analysts, Read stepping down is an expected outcome after years of transformation work failed to return the group to consistent levels of growth. The announcement comes a week out from Cannes Lions, an international gathering that effectively acts as the Oscars for advertising.   

“The news is unsurprising because of WPP’s lackluster business and stock performance in recent years alongside the installation of a new Board Chairman at the beginning of this year,” said Brian Wieser of Madison and Wall in a note around the news. “Presumably the delay of the transition of Board Chair role by a year was responsible for prolonging this outcome.”

WPP maintains what Wieser described as a “deep bench” of talent that could succeed Read, and may draw on outside candidates, but still needs to iron out a more concrete strategic direction.