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A dark anecdote is circulating in the marketing sector that a Kent-based basketmaker acquired four decades ago as a vehicle to build a global advertising giant might survive longer than the conglomerate it spawned.

For decades, the market leadership of WPP – with its one hundred thousand employees servicing international brands from automotive giants to beverage leaders – stood as the corporate embodiment of Britain's shining reputation for innovative marketing.

WPP has housed some of the most prestigious agency networks, producing internationally recognized campaigns such as Dove's Real Beauty, which disrupted stereotypical portrayals of women.

Among WPP's most celebrated works are the unlikely pairing of a music legend with a dairy brand, and decades of work for Coca-Cola, including the innovative idea to swap its logo on bottles with individual first names – a worldwide success still on shelves twelve years later.

But now, as WPP battles to stem a increasing departure of clients worth billions of pounds and confront an existential race to match the AI and data capabilities of rivals, there is hitherto unthinkable talk of a dissolution.

"WPP dominated the world at one point, it was like the global powerhouse," commented one marketing leader. "It was symbolic of UK success and the country's status as the world center for advertising."

Chapter Closes on CEO Tenure

In August, a profit warning and dire forecast of revenue decline for this year sent WPP's shares crashing to their weakest point since the 2008 financial crisis, marking the end of a brutal seven-year period as chief executive.

A market capitalisation of just £4 billion – compared with its £25 billion valuation eight years ago, when WPP was the world's largest marketing services company – has left the business at risk of being removed from the FTSE 100 index it joined almost three decades ago.

"One more earnings alert could force its exit and WPP is up against it," said one industry expert. "The situation WPP finds itself in now is hard to imagine. WPP is highly exposed, it is potentially facing a takeover or breakup."

For WPP's board, the final straw came when a major client informed the company that it was losing its $1.7 billion global business. The chief executive stepped down that Monday morning.

Operational Changes and Agency Restructuring

The departed CEO's strategy was to streamline a sprawling operation to create – or give the appearance of creating – a group suited for an AI future. The move saw the disappearance of some of the most renowned names in advertising.

"It was a bashing and crashing of names that were linked to 'traditional' advertising, it was a mess," said a ex-executive from a WPP agency. "He eliminated the brands. Clients certainly didn't understand why treasured trophies had to go."

Others argue that the former CEO has laid the groundwork for a turnaround and that WPP's fall was already apparent under previous leadership. Its market value fell substantially over the founder's last year in charge.

WPP has been investing £300 million annually in AI tools to enable it to make ads more cost-effective and more quickly and has 70,000 employees using its tech platform.

However, concerns are mounting among the rank and file over job cuts with AI poised to take over large portions of the company's creative, media and data processes.

"The place where the fear is most present is lower down, in entry-level positions where you come in and learn the business," said one staffer. "Routine tasks, data, consumer insight: AI can write you a market analysis with creative included in it and market segmentation in 2.5 minutes. That would have been a fortnight's labor for several graduate-level people."

Intense Rivalry

In the ad market, WPP is being significantly outperformed – principally by France's competitor, which took its crown as the biggest ad group in the world by revenue last year.

The competitor has seen its share price increase almost 200% in five years, giving a market value of €21 billion. It is led by a seemingly indefatigable leader who is described by more than one industry executive as reminding them of "previous leadership in his prime."

US-based rivals have each seen their shares appreciate just more than 50% over the same period, with substantial market capitalisations.

New Leadership and Recovery Plans

WPP has asked a ex-Silicon Valley leader to lead a recovery.

Earlier this month, she unveiled a five-year $400 million partnership with a major technology company to embed AI products into WPP's technology platform.

The new CEO, who has also worked at major media companies, is said by insiders to have been "customer-focused" in constant meetings in New York and London.

"She is not here to glaze anything," said a source who has spent time with the new CEO since she took over. "She is very clear-eyed about the challenges and is determined to move fast to turn it around."

Given the state of WPP's business, analysts believe she may have only a year to save it. The previous CEO sold off assets including a market research group and used the proceeds to help pay down debt.

However, lower operating profits – down 35% year-on-year in the first half of 2025 – raise doubts about WPP's "debt servicing capability" – a measure of a company's ability to pay down debt. Of more fundamental concern is an operating margin that fell from 11.5% in the first half of last year to 8.2% in the first six months of 2025. By comparison, the figure for its main competitor is just more than 18%.

"I cannot ever remember margins being anywhere near as low as that," said one analyst. "It is alarming really. With the new CEO they have gone for the tech industry approach. She will be given a year to work out whether there is a tech turnaround story here, if not the board will mandate her to break WPP up."

Investment Interest and Outlook

Despite the significant challenges on WPP, there are signs that investors believe the business may have hit its nadir and be set to bounce back.

WPP Media, which manages more than $60 billion in global media investment in campaigns for clients, has always been the primary earnings source for the company. WPP Media on its own is worth more than the approximate £7.5 billion enterprise value of WPP, which includes its debt.

A number of investment funds have increased their position in WPP, sensing a opportunity as change looms under new leadership, but the question is whether the ad giant can convince clients and investors quickly enough.

"Investors are scared of being on the wrong side of AI," said one financial source. "It is the biggest theme in markets globally. It feels as though WPP is on the wrong side of that trade at the moment.

"Advertising clients are unpredictable, there is a contagion to winning and losing. The worry is that the decline is baked in. But change comes when you are on the precipice of disaster. I would never write WPP off."