WPP discontinues its operations in Russia as other holding companies weigh options

WPP has decided to discontinue its operations in Russia following the country’s ongoing invasion of Ukraine. In an internal memo sent to all WPP staff, CEO Mark Read stated that continuing operations in Russia would be “inconsistent” with the company’s values. Read said in the memo that the discontinuation will carry on over the “next few weeks and months.” While WPP’s business in Russia only accounted for 0.6% of WPP’s net sales last year, it employs 1,400 employees there. “Our Russian colleagues have been dedicated and valued members of the WPP family for a very long time and I deeply regret the impact this decision will have on them,” Read added. We will work with our people, clients and partners to consider all options, including transfer of ownership and divestment, and we will provide additional and enhanced financial support to anyone who loses their employment as a result of this decision. Local agency leaders are discussing next steps with their teams directly.” WPP agencies with offices in Russia include GroupM, Wunderman Thompson, and VMLY&R. The news comes a day after Consultancy giant Accenture announced that it would be discontinuing its business in Russia. Accenture currently employs nearly 2,300 staffers in the country, including those who are part of its marketing services division Accenture Interactive, and said it will be providing support to those employees. Other holding companies Other holding companies continue to monitor the Ukraine situation-Russia situation. Currently, Interpublic Group of Cos.’ operations in Russia account for a tenth of one percent of its revenue. “Our Russia operations are abiding with all sanctions imposed by the U.S. and the broader international community," a spokesman for IPG said. “Our agencies in Russia involve approximately 200 employees, and we are assessing the most appropriate course of action that is both responsive to the gravity of the situation and also seeks to take into account the welfare of our colleagues. As indicated at the outset of this unprovoked war, our primary focus continues to be remaining in regular contact with our affiliate partners in Ukraine in order to determine the most effective ways for us to provide support to them, and the needs of all Ukrainians, during this crisis.” While Publicis has no immediate updates on the situation, earlier this week its CEO and Chairman Arthur Sadoun sent an internal memo to the holding company’s 350 Ukraine employees ensuring them a guaranteed salary for the rest of 2022. Stagwell Group and Omnicom Group weren’t immediately available for comment, but earlier this week spokespeople for the holding companies confirmed they are providing support for their Ukraine employees. “We continue to be deeply shocked and saddened as we witness the ongoing invasion of Ukraine,” Giulio Malegori, Europe, Middle East and Africa CEO, Dentsu International said in a statement to Ad Age. “Our hearts go out to everyone whose lives have been impacted by this escalating conflict including our affiliate people in Ukraine, our employees in Russia, Central Eastern Europe and around the world. The health and safety of our employees continue to be our top priority and we are providing additional support to our people in need.” “We are reviewing all relationships with Russian companies to ensure we are fully compliant with international sanctions," Malegori continued. “We will only work with fully compliant partners, clients, suppliers and financial institutions and continue to rigorously minimize any impact on our clients’ activities as well as Dentsu operations. In regards to global businesses closing their Russian operations, we are closely reviewing this situation to better guide our clients and also make informed decisions for our business and communities as a whole.”

WPP discontinues its operations in Russia as other holding companies weigh options

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