Agencies

Omnicom spent $786m cutting staff after IPG merger closed

Omnicom booked $786 million in cash severance costs in the year ended 31 December 2025, all of it tied to the integration of Interpublic Group and to efficiency actions across its advertising and production businesses.

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By Xaviery Malinao · 2026-09-11

TLDR

Omnicom booked $786 million in cash severance during 2025 after completing its IPG takeover in November, with a further $47 million in cuts still running in the second quarter of 2026. APAC accounts for roughly 26,700 staff and $537.6 million in quarterly revenue, while senior hires into the region suggest local operations are being reinforced.

KEY TAKEAWAYS

01Omnicom recorded $786 million in cash severance costs globally across the full year ended 31 December 2025.
02The IPG merger closed on 26 November 2025, creating the world's largest marketing holding company.
03A further $47 million in severance and repositioning costs landed in the second quarter of 2026 alone.
04APAC employed roughly 26,700 Omnicom staff at end-2025, generating $537.6 million in quarterly revenue.
05David McCallen joined as Omnicom Media APAC's first Chief Strategy Officer as the integration accelerated.

The scale of the cuts, in plain terms

Omnicom booked $786 million in cash severance costs in the year ended 31 December 2025, all of it tied to the integration of Interpublic Group and to efficiency actions across its advertising and production businesses.[1] To put that figure in agency terms: it exceeds the entire annual revenue of most mid-sized holding groups operating anywhere in the world.

The merger itself moved quickly. Announced on 8 December 2024, it closed less than twelve months later on 26 November 2025, with IPG becoming a direct wholly owned subsidiary of Omnicom.[1] On top of the cash severance, Omnicom recorded a further $380.6 million in non-cash real estate repositioning charges as offices were consolidated across the two networks.[1]

The cuts did not stop at year end. In the second quarter of 2026, Omnicom booked an additional $47 million in severance and repositioning costs, alongside $40.1 million in integration and transaction expenses.[2] Any marketer whose agency sits inside the combined Omnicom-IPG structure should treat team continuity as an open question.

What is happening in APAC and Australia specifically

Omnicom employed approximately 26,700 people across the Asia-Pacific region as at 31 December 2025, making it one of the larger employer footprints in the regional marketing industry.[1] In the second quarter of 2026, APAC generated $537.6 million in revenue, representing 9.0 per cent of Omnicom's core operations globally.[2]

Australia's competition regulator removed the last local hurdle on 17 July 2025, when the Australian Competition and Consumer Commission granted unconditional clearance for the acquisition to proceed.[3] No conditions were attached, meaning no forced divestments of local agency brands were required. What specific Australian headcount changes or brand consolidations follow from the global restructure has not yet been confirmed by the company.

The global numbers make plain that the integration machinery running across Omnicom's combined networks reaches every market, including this one. Clients holding retainers with agencies across both the legacy Omnicom and legacy IPG rosters should expect team changes, possible office moves, and the chance that familiar brand names disappear into merged entities before the year is out.

Senior hires show APAC investment alongside the restructure

Omnicom Media APAC appointed David McCallen as its first-ever Chief Strategy Officer as the integration accelerated, a hire that chief executive Tony Harradine said reflected a commitment to strategic excellence across the region.[4]

McCallen was direct about what the role involves. "It's a huge honour to take on this role," he said. "We're at a point where the industry needs to rethink what great strategy looks like and build a model fit for the complexity our clients navigate every day. At the same time, APAC continues to be an increasingly important source of growth, innovation, and influence for the global industry. The depth of talent we now have across the region is immense. For me, the exciting part is bringing that talent together, building something genuinely different and proving what this region is capable of."[4]

Harradine pointed to McCallen's record at OMD as the evidence behind the appointment. "David's appointment reflects our commitment to strategic excellence across the region," Harradine said. "His proven ability to elevate strategic thinking and drive transformational outcomes, as demonstrated by OMD's remarkable rise within APAC, will be instrumental in shaping the future of our business."[4]

Global headcount is falling and the costs of that are still accumulating, with Q2 2026 severance expenses of $47 million confirming the process runs well into this year.[2] At the same time, Omnicom is placing experienced leaders into APAC roles, and a region generating $537.6 million in a single quarter is one the parent company is watching closely.

FREQUENTLY ASKED QUESTIONS

When did Omnicom complete its merger with IPG?
Omnicom completed the acquisition of Interpublic Group on 26 November 2025, less than twelve months after the deal was announced on 8 December 2024.
How much did Omnicom spend on severance after the IPG merger?
Omnicom recorded $786 million in cash severance costs across the full year ended 31 December 2025, with a further $47 million in severance and repositioning costs booked in the second quarter of 2026 alone.
Did Australia's competition regulator impose any conditions on the merger?
No. The Australian Competition and Consumer Commission granted unconditional clearance on 17 July 2025, with no structural remedies or divestment requirements attached.
How large is Omnicom's APAC operation?
As at 31 December 2025, Omnicom employed approximately 26,700 people in Asia-Pacific. The region generated $537.6 million in revenue in the second quarter of 2026, equal to 9.0 per cent of core operations globally.
What should Australian marketers do now?
Clients with agencies inside the combined Omnicom-IPG structure should review their account team arrangements, ask their agencies directly about any planned brand consolidations, and confirm continuity of service in writing where possible. Specific Australian headcount or brand changes have not yet been confirmed publicly.

Xaviery Malinao

Xaviery Malinao writes for Prompt the Market on how brands and agencies are adapting to answer engines, drawing on Bushnote's work with clients across search, AI search and content.

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