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Sharb Farjami, CEO of GroupM North America, told employees during a company-wide town hall Friday afternoon that a sweeping organizational restructure will “impact about 40% to 45% of our entire workforce,” according to a recording of an all-hands obtained by ADWEEK.
“This has been a pretty tough week for us,” Farjami said. “There have been colleagues that have left our business… It can feel very destabilizing.”
When asked what ‘impacted’ meant, a GroupM spokesperson said the 40%-45% figure “does not refer to people who are departing the business” but “is in reference to how we’re bringing teams together.”
The spokesperson also clarified that the figure refers to U.S.-based employees specifically. They declined to comment on whether the shift will include future layoffs.
The new department—Media Management and Delivery, or MMD—will absorb investment, Nexus, and campaign reporting functions into a unified division. The leaders at the meeting did not clarify whether the impacted roles would include layoffs, reassignments, or other organizational changes.
Agency brands won’t go away
During the 2 p.m. ET meeting, agency leadership reiterated that the changes are part of a broader plan to shift to a “single operating model” across GroupM North America. “The agency brands will continue to exist… What they cease to be is individual, distinct business units,” said one executive, whom ADWEEK was unable to identify. “They will cease to operate business P&Ls in the market, but they will continue to be homes for our clients.”
Employees were told to expect a follow-up email detailing the next steps, as well as a question form they can fill out.
The update follows ADWEEK’s earlier report that layoffs had begun at the media network earlier this week—days after the agency reportedly rebranded from GroupM to WPP Media.
The meeting reiterated details from a leaked memo
A leaked memo sent by GroupM CEO Brian Lesser on Monday, which has been obtained by ADWEEK, also outlined changes including the shift to a single operating model, agency title restructuring, and the integration of Nexus and investment functions.
“As part of this process, we’ve had to make difficult decisions as we work to improve our team structure and reduce overlap,” Lesser wrote. “This will affect some roles across our markets.”
GroupM leadership sent a new memo to employees after the meeting
Following the meeting, Farjami sent a note to employees reiterating the changes. In the note, obtained by ADWEEK, he acknowledged: “This has been a challenging week, especially for those whose roles were impacted. We’re providing support through WPP’s Employee Assistance Program for team members leaving the business, and we have internal employee resources to help you navigate the changes, too.”
Read the full memo below:
Team,
Thank you to everyone who joined today’s all-hands. For those who couldn’t attend, I want to acknowledge this week’s changes and what they mean for all of us at GroupM.
This has been a challenging week, especially for those whose roles were impacted. We’re providing support through WPP’s Employee Assistance Program for team members leaving the business, and we have internal employee resources to help you navigate the changes, too. These decisions were not made lightly, but they are necessary. As we evolve, we’re building a stronger, more unified GroupM that delivers more opportunity for our people and greater value to our clients.
Evolving our agency brands, simplifying our structure, and integrating Nexus, Investment, and Campaign Reporting into one unified integrated media team will bring the full power of GroupM to market. This team is a strategic response to the market’s demand for something different. The focus areas — marketplace & partnerships, media activation, media solutions, product innovation, and commerce — position us to lead in an AI-enabled era. We’re also formalizing a client growth & operations team at the center to better support our client teams with greater agility.
Many of our clients see the value in this vision as they evolve their own businesses. They are optimistic, and so am I.
As this new chapter takes shape, we’ll grow into it together. Ensuring we listen to you through this change will always be at the front of my mind. Please reach out to your manager or the People team for guidance, and you can continue to ask questions or share feedback here. I’ll keep you updated as we move forward.
Thank you for your passion and dedication to GroupM, our clients, and each other.
Sharb
Correction 5/9 at 6:25pm ET: The headline has been changed to indicate that U.S. staffers are affected by the change.
