EMPLOYEES WPP Scangroup PLC, a multinational advertising firm with operations spanning across various countries in Africa, including Tanzania, may be taken aback by the recent revelation that the company is contemplating staff layoffs and role restructuring in certain units. This decision comes in light of the challenges faced by the firm in meeting its revenue targets.

The publicly traded company has stated that its decision to restructure critical units in Kenya is a response to market demands, although macroeconomic trends may also play a significant role in this strategic move.

WPP-ScanGroup, with a presence in 25 countries in sub-Saharan Africa, operates majority-owned offices in Kenya, Ghana, Nigeria, Rwanda, South Africa, Tanzania, Uganda, and Zambia.

A spokesperson from WPP Scangroup confirmed to The Kenyan Wall Street on Wednesday that their creative business in Kenya, which also provides digital services and solutions in the advertising and communication sector, is undergoing a restructuring of its skillset composition. This includes bolstering certain areas while streamlining others

“New roles will be created to strengthen our capabilities and build new skills in areas such as content, data, strategy, and tech; other existing roles will be modified to reflect global best practices; and lastly some roles will reduce to enhance departmental efficiencies,” the spokesperson added.

In November 2023, the firm issued a profit warning to investors. Among the reasons it cited in the notice was “continued subdued economic environment in our markets of operations that has led to cautious spending by our clients on advertising, marketing and communications.” It also reported spending Kshs 178m on a one-time staff retrenchment.

In February 2024, UK media reported that WPP Scangroup could be facing potentially expensive litigation from its founder and former CEO, Bharat Thakrar, who was ousted in 2021.

Thakrar, who still owns 10 percent of the company, raised issues with his exit, which he claimed was discriminatory and designed to ruin his reputation. He is claiming damages amounting to Kshs 4.3bn.