Omnicom-IPG merger Leading advertising company Omnicom has made a sensational decision after acquiring rival Interpublic Group for 1300 crores. On Monday, it announced that as part of the merger process, it will lay off more than 4,000 employees and close some old advertising agency brands.
However, the reason for these job cuts is the impact of AI and competition in the market. The advertising industry is currently facing severe pressure as artificial intelligence (AI) is transforming creativity, as well as tech giants like Meta making it easier to do advertising. In addition, Omnicom made this huge takeover to withstand fierce competition from rivals like French company Publicis and UK company WPP.
The acquisition, which was completed in November, is merging some of the leading agencies into other companies. DDB and Mullenlow, founded in 1949, will be merged into Omnicom’s TBWA. FCB (the largest of the Interpublic Group), which dates back to 1873, will be merged into Omnicom BBDO.
The job cuts will be primarily in administrative roles, but some leadership positions will also be affected. The company estimates that these layoffs will result in cost savings of over Rs 75 crore per year. After the job cuts, 85% of Omnicom’s workforce will be in client-focused roles and 15% in administrative roles.
Market analysts believe that this development will make the advertising market even tougher. It seems that other competing companies such as WPP are already considering similar decisions. Interpublic Group also laid off about 3,200 people in the first nine months of 2025.
What has happened (Merger closed & combination complete)
The merger between Omnicom and IPG has officially closed — the transaction was completed on November 26, 2025.
As part of the deal, Omnicom assumed IPG’s outstanding senior notes (about US$2.95 billion).
With the merger done, the combined entity becomes the largest marketing/advertising firm globally by revenue (estimated ~$25 billion).
The Restructuring: What’s Changing Now
Right after the merger, Omnicom began a major restructuring of agency brands and workforce — a transformation that will reshape the global advertising landscape.
Over 4,000 jobs are being cut as part of efforts to eliminate redundancies and streamline operations worldwide.
Several long-standing agency brands are being retired or merged into other networks. For example
DDB and MullenLowe will be folded into TBWA.
FCB will merge into BBDO.
The goal is to realize approximately US$750 million in annual cost synergies.
Implications — For Industry, Clients, Talent
For the advertising industry, this is one of the biggest consolidations ever. The merged entity has the size and breadth to offer full-funnel marketing: from creative advertising to media buying to data-driven precision marketing.
Clients might benefit from more integrated services — but there’s also uncertainty with legacy brand closures and workforce reductions. Some industry observers warn the value of “talent + creativity” could be eroded in favour of operational efficiency.
For employees: many jobs are at risk — especially overlapping roles in admin, support, and possibly leadership. But the company suggests client-facing and revenue-generating roles stand a better chance of retention.What’s Next / Things to Watch
Integration of senior notes and financial obligations is expected to complete fully within days of closing.
What’s Next / Things to Watch
Integration of senior notes and financial obligations is expected to complete fully within days of closing.
The newly combined firm will likely roll out a unified “platform” offering (media + creative + data + tech), especially as AI and digital-first marketing continue to reshape advertising. Industry commentary suggests this consolidation is partly a response to disruption from tech platforms and AI.
Observers will watch for client retention — or loss. If top talent leaves or brand identities blur, big clients could migrate to independent agencies or niche creative shops.
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