WPP has initiated a potential sale process for its public relations arm Burson, in a move that could mark the first major divestment under chief executive Cindy Rose, according to a report in The Times.
Advisers at Goldman Sachs have been tasked with exploring strategic options for Burson, including a possible sale. The development comes as Rose advances a sweeping restructuring plan aimed at simplifying WPP’s complex operations and restoring growth.
Burson was created in 2024 through the merger of BCW and Hill & Knowlton, WPP’s two largest communications agencies, and currently employs around 6,000 people worldwide. A divestment would signal WPP’s near-complete exit from the PR business, following its earlier sale of a majority stake in FGS Global to KKR, which valued the firm at £1.3 billion.
The move comes against the backdrop of weakening performance in WPP’s PR segment, which recorded a 6 per cent decline in revenue last year on an underlying basis. The group has also been hit by client losses and a broader slowdown in advertising spending, The Times reported.
Rose acknowledged the challenges, stating the company’s performance was “just not where it needs to be.” according to the report.
Under her “Elevate28” strategy, Rose is targeting business stabilisation this year and a return to organic growth in 2027. The plan includes selling non-core assets and delivering £500 million in cost savings by 2028.
A major structural overhaul is also underway. WPP intends to dismantle its traditional holding company model—previously comprising hundreds of operating units—and replace it with a more integrated structure built around four divisions: WPP Media, WPP Creative, WPP Production and WPP Enterprise Solutions, organised across four geographic regions.
The company’s shares have fallen sharply, declining 53 per cent over the past year and 37 per cent since Rose took charge. WPP was also relegated from the FTSE 100 index in December.
Despite the downturn, the company has secured new business wins, including a global media account with Estée Lauder and European media work for Henkel Consumer Brands.
Shareholders are expected to vote on a revised remuneration package for Rose at the company’s annual general meeting on May 8. Under the proposed structure, her total compensation could reach £14.2 million if she succeeds in increasing WPP’s share price by 50 per cent—significantly higher than the £8.6 million maximum payout available to her predecessor, Mark Read, in 2024.
WPP is scheduled to report its first-quarter earnings on April 28.
