Omnicom to exit $2.5 billion non-strategic businesses in 12 months: CEO John Wren
Omnicom Group is preparing to divest or exit businesses accounting for roughly $2.5 billion in annual revenue, as the US-based marketing and corporate communications firm has accelerated a sweeping portfolio overhaul following its $13.25 billion acquisition of Interpublic Group (IPG).
Speaking on the company’s fourth-quarter earnings call, Chairman and Chief Executive Officer John Wren said Omnicom had already sold or exited units generating more than $800 million in annual revenue. Besides, the company intends to complete the remainder of the disposals within the next 12 months. “We’ve already sold or exited some of these businesses representing annual revenue exceeding 800 million,” Wren said during the earning call.
Additionally, Omnicom has also aimed to reduce its exposure in certain smaller markets, shifting from majority to minority ownership positions in businesses representing about $700 million in annual revenue. Wren said these markets were no longer core to the Group’s long-term strategy.
“We all move from a majority to a minority owned position in these smaller markets which represent approximately seven hundred million dollars in annual revenue,” Wren added.
Further, post the merger with IPG, the company has doubled its targeted annual run-rate synergies to $1.5 billion over the next 30 months, up from the initial $750 million estimate. The management expects to capture $900 million of these savings in 2026 alone. According to Wren, around $1 billion of the total will stem from labour cost reduction through the elimination of overlapping corporate, network, and operational roles.
Further efficiencies are expected from simplifying regional and brand structures, consolidating resources, and accelerating outsourcing and offshoring under a more unified operating model.
Notably, in December 2025, Omnicom had said it would cut more than 4,000 jobs and fold several agency brands into larger networks as part of the post-merger integration.
Wren also emphasised investment in automation and artificial intelligence to improve margins and client servicing, as the advertising group seeks to adapt to technological disruption and mounting competitive pressures.
The board has authorised a $5 billion share buyback and launched a $2.5 billion accelerated repurchase programme, while pledging continued investment in media, commerce, consulting, and data capabilities.
Omnicom reported a 27.9% rise in the fourth quarter of the fiscal year 2026 revenue to $5.53 billion, reflecting organic growth and one month’s contribution from IPG, compared with $4.32 billion a year earlier.
Wren said the IPG combination had strengthened the company’s client roster, citing new or extended mandates with multinational brands including American Express, Bayer, BBVA, BNY, Mercedes-Benz, and NatWest Group.
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