Listed advertising firm WPP Scangroup is planning to lay off staff and restructure roles in some of its units as it struggles to meet its revenue targets.
- •According to several sources, the company issued notices to some of its staff to reapply for roles, and notified them that some roles will cease to exist.
- •It was not immediately clear how many staff members received the “intent of redundancy” notices.
- •The notices were primarily sent to employees in the creative units, but there are also reports that staff in the account management and shared services departments also received them.
The listed firm now says that it is responding to market needs, but macroeconomic trends may also rank high in its decision to restructure critical units in Kenya. WPP-ScanGroup operates in 25 countries in sub-Saharan Africa and has majority-owned offices in Kenya, Ghana, Nigeria, Rwanda, South Africa, Tanzania, Uganda, and Zambia.
“Our creative business in Kenya that also offers digital services/solutions in the advertising and communication space is making some changes to its current skillset composition, bolstering certain areas, and streamlining others,” a WPP Scangroup spokesperson confirmed to The Kenyan Wall Street on Wednesday.
“New roles will be created to strengthen our capabilities and build new skills in areas such as content, data, strategy, and tech; other existing roles will be modified to reflect global best practices; and lastly some roles will reduce to enhance departmental efficiencies,” the spokesperson added.
In November 2023, the firm issued a profit warning to investors. Among the reasons it cited in the notice was “continued subdued economic environment in our markets of operations that has led to cautious spending by our clients on advertising, marketing and communications.” It also reported spending Kshs. 178mn on a one-time staff retrenchment.
In February 2024, UK media reported that WPP Scangroup could be facing potentially expensive litigation from its founder and former CEO, Bharat Thakrar, who was ousted in 2021. Thakrar, who still owns 10% of the company, raised issues with his exit, which he claimed was discriminatory and designed to ruin his reputation. He is claiming damages amounting to Kshs. 4.3bn.
