WPP PLC CEO Mark Read will retire at the end of this year to search for successors among one of the world’s largest advertising agency groups amid slowing sales.
Read, 58, has led the UK company for about seven years and has been with the company for more than 30 years, the company said in a statement on Monday.
Once the world’s largest advertising agency, WPP has been working to reignite growth and simplify its operations to address softening sales and frustrating prospects. The global economic downturn has broken down on customer spending, especially in Asia, where the rise of artificial intelligence capabilities automated advertising creation and distribution is raising questions across the advertising industry.
In February, WPP sharedFalledAnalysts estimates are missing after the group predicts sales will remain flat or shrink this year, while rival group clublis group SA said.Expect organic growthThis year is between 4% and 5%.
The company had previously restructured its stable brand to reduce costs and announced plans to spend hundreds of millions of pounds on new technologies, including building AI capabilities.
Read’s retirement highlights “the challenge for his successor is to overcome years of poor financial and stock performance against competitors and open the prospect of strategic and structural shifts,” said Matthew Bloxham, senior industry analyst at Bloomberg Intelligence Agency. “New leaders will need to double down on simplification, cost cuts and technology investments.”
Former BT Group PLC head Philip Jansen was appointed chairman of the advertising group in January.
This story was originally fortune.com
