The Interpublic Group (IPG), the global advertising and marketing services giant with several top agencies in India, has initiated a restructuring of its workforce in the country. This move comes in the lead-up to its impending $13 billion merger with Omnicom Group, according to a report by The Economic Times, citing industry insiders.
Merger With Omnicom Triggers Organisational Overhaul
The consolidation effort follows the announcement made in December last year, when Omnicom Group revealed plans to acquire IPG. Once completed, the merger will create the second-largest advertising and media holding company in the world, behind WPP’s GroupM. Both companies are based in New York, and Omnicom is spearheading the integration process as the acquirer.
Sources familiar with the matter noted in the report that the restructuring in India is part of a broader global alignment. The merged entities may have to let go of brands and associated teams which have a direct conflict of interest in case of competing clients, said one executive in the report.
Restructuring Targets Corporate Functions, Not Media
The Competition Commission of India (CCI) approved the merger last week, making India one of the first ten countries to grant antitrust clearance for the deal.
A global spokesperson for IPG stated via email, “We are centralising corporate functions like finance and accelerating investment in central platform capabilities like production and analytics through greater consolidation.” The spokesperson emphasised that the restructuring is part of a transformation announced earlier this year. “The actions are due to the transformation and restructuring that Interpublic announced in February, and not related to the proposed transaction with Omnicom.”
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Impact In India: Creative Teams To Be Protected Where Possible
In India, the changes are primarily affecting corporate departments such as finance and human resources, along with certain regional roles. However, sources in the report reveal that there is a conscious effort to minimize disruption to creative teams, though some overlap may be unavoidable.
“Creative teams — core to agencies — are being protected as far as possible,” said another senior executive involved in the transition, claims the report.
IPG Dominates Indian Market Compared To Omnicom
Despite Omnicom’s larger global footprint, IPG holds a stronger presence in India. The group manages blue-chip accounts such as L’Oreal, Air India, and Britannia. In comparison, Omnicom’s Indian operations, including agencies like DDB Mudra, TBWA, and BBDO, are relatively smaller in scale.
IPG also controls a strong media network in the country through IPG Mediabrands, which includes Initiative Media, Lodestar UM, Interactive Avenues, and PR agency Weber Shandwick.
Shashi Sinha, Executive Chairman of IPG Mediabrands India, clarified that media operations remain unaffected. “There is no downsizing exercise at IPG Mediabrands India with reference to the proposed merger,” he said, the report added.
