Interpublic Group of Cos. CEO Philippe Krakowsky announced a plan Wednesday to save $250 million through restructuring within its agencies and other parts of the company in 2025.
The effort comes as IPG’s fourth-quarter revenue and profit declined. The restructuring includes plans to centralize corporate functions, offshoring and near-shoring in “corporate services and certain areas of client service delivery” and “accelerating progress” in areas such as production and analytics services, Krakowsky said on the holding company’s earnings call. The plan will also include operational and real estate changes for certain agencies.
Krakowksy also made a point to respond to “competitors” who have commented on Omnicom Group’s plan to acquire IPG, which was announced in December.
“While we understand that our competitors are trying to disrupt what we are looking to build, it bears repeating that the integration will remain very focused and not get in the way of the services we deliver to clients every day,” he said.