WPP Group, the second largest marketing services group, is understood to be preparing to cut several thousand jobs worldwide as the economic downturn hit advertising demands. It is understood that majority of the job losses will come in Western Europe and North America.
It has been reported that the company is likely to cut a high number of jobs in Europe and North America where the slump has been more severe. Meanwhile, it is expected to recruit new staff across Latin America, Asia and Eastern Europe, which have been less affected by the uncertain economic conditions.
WPP chief executive Sir Martin Sorrell says that mature markets such as Britain, France, Italy, Germany, Spain and United States are “under pressure” and that the company would balance between the “revenue and the headcount”. It is not yet clear which of its divisions will be most affected.
A WPP spokesman denies that there will be any statement from the group about job cuts.
The news follows Omnicom Group’s announcement last month that it will slash 3,500 jobs globally.