WPP Shifts to Unified Operating Model: ‘Elevate28’ Strategy Launched
In a bold move to overcome declining revenues and complexity, WPP is transitioning from its traditional holding company model to a unified, AI-powered operating system. The new strategy, Elevate28, consolidates operations into four key units, aiming for £500m in cost savings and sustainable growth by 2028.
The New “Four-Unit” Structure
WPP is eliminating its decades-old holding company structure in favor of a more integrated approach. The new Elevate28 strategy consolidates its agencies into four core operating units, making the company more agile and aligned with modern marketing demands.
1. WPP Media
Unifying media investment across platforms, WPP Media integrates brands like GroupM under a single umbrella for better coordination and streamlined media buying.
2. WPP Creative
WPP Creative merges global PR, design, and creative agencies like Ogilvy, VML, and AKQA, bringing together iconic brands to work under one cohesive structure.
3. WPP Production
This unit centralizes production capabilities, providing global content solutions and reducing inefficiencies in content creation and delivery.
4. WPP Enterprise Solutions
This new unit focuses on AI-driven business transformation, customer experience, and digital commerce, tapping into growing demand for enterprise-level marketing solutions.
Key Drivers of the “Elevate28” Strategy
WPP’s move to simplify its operations centers around several core strategic pillars:
1. AI Integration
WPP Open, the company’s AI-powered platform, will serve as the “intelligent orchestration layer” across all marketing disciplines. This integration will drive smarter decision-making by connecting data, creative, media, and tech in real time.
2. Cost Efficiency
WPP is targeting £500m in savings annually by 2028 through portfolio rationalization and eliminating redundant functions. This restructuring aims to increase operational efficiency while minimizing costs.
3. Simplified Client Access
The new structure eliminates silos that made client services cumbersome. With the unified operating model, clients will have easier access to WPP’s full range of services.
4. Shift in Pricing Models
WPP is moving away from traditional time-based billing models and adopting outcome-based pricing. This approach aligns better with the AI-driven efficiencies WPP plans to implement.
The “Elevate28” Phases: A Three-Stage Transformation
WPP’s transformation will occur over three phases, each with distinct objectives:
Phase 1 – Stabilize (2026)
The focus here is on improving business performance, executing initial cost-saving strategies, and rationalizing the portfolio. WPP aims to achieve £250m in gross savings by the end of 2026.
Phase 2 – Build (2027)
In 2027, WPP plans to embed the new operating model across its global network. This phase will also focus on achieving organic growth through improved go-to-market execution.
Phase 3 – Accelerate (2028)
By 2028, WPP intends to be a leaner, AI-enabled organization. The goal is to achieve high-margin growth, stronger cash conversion, and sustainable organic growth.
The Role of WPP Open in “Elevate28”
A key component of the new strategy is WPP Open, the company’s AI-powered marketing platform. This platform connects data, media, creative, and tech to deliver real-time insights and recommendations.
The launch of Agent Hub within WPP Open will enable a new way of working, where “Super Agents” collaborate across client briefs to drive efficiency and creativity. CEO Cindy Rose emphasized that AI disruption is here to stay, marking a fundamental shift in the marketing industry.
Impact on WPP’s Workforce and Financials
WPP’s workforce of nearly 100,000 employees will face changes as the company moves toward an AI-driven, output-based model. While some jobs will be eliminated, WPP plans to invest in upskilling programs to ensure employees can adapt to new roles within the company.
The financial impact of the transformation will be significant, with WPP targeting £500m in savings by 2028. However, a portion of these savings will be reinvested into high-growth areas, including AI, media, and digital commerce solutions.
Industry Reaction and Market Positioning
WPP’s restructuring is seen as a response to the increasing demand for more integrated and efficient marketing solutions. Jon Cook, CEO of WPP Creative, likened the new structure to an “operating system” where agencies collaborate more effectively. He emphasized that the aim is to make it easier for clients to navigate WPP’s services while enhancing their access to creative talent and resources.
This pivot to an AI-enabled, integrated model positions WPP to better compete with emerging players and adapt to the rapidly evolving marketing landscape.
Frequently Asked Questions
How will WPP’s restructuring affect clients?
The new model will simplify the service delivery process, making it easier for clients to access WPP’s full suite of services. The integration of AI will also enhance decision-making and campaign execution.
What is WPP Open?
WPP Open is the company’s AI-powered platform that integrates creative, media, data, and technology to streamline marketing operations and provide actionable insights in real time.
Will WPP’s workforce be reduced?
WPP plans to reduce headcount as part of the restructuring. However, the company is also investing in upskilling programs to help employees transition to new roles within the restructured company.
Final Takeaway
WPP’s Elevate28 strategy represents a significant shift toward AI-enabled marketing, focusing on efficiency, integration, and data-driven decision-making. By consolidating its vast network of agencies into four key units, WPP is poised to deliver superior value to clients, streamline operations, and achieve sustainable growth.
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