Marketing firm WPP Scangroup will lay off staff as it looks to further ‘right-size’ its operations for the future amid continued pressure on revenues and elevated costs.
The firm said it has initiated a redundancy exercise across the group running through to the end of August.
The exercise will further reduce the marketing firm’s workforce, which has been falling in recent years due to restructures.
WPP Scangroup’s staff count, for instance, fell to 452 in 2023, down from 554 previously after layoffs in May 2023.
The firm currently has a workforce of 434 as of December 2024.
The Group had previously laid off staff at the depths of the Covid-19 pandemic in 2020.
“We have issued notices of redundancies and are currently in the consulting period to determine who we need for the business, not just now but also in the future,” WPP Scangroup interim Chief Executive Officer Miriam Kaggwa told the Business Daily.
“I am very confident that the exercise we are going through now will show the benefits, as it will leave us very well-positioned for the future.
“We do not have an exact number in mind; we will be looking at what we need to meet to service our clients,” she added.
WPP Scangroup revenues have come under pressure from reduced spending by clients and the exit of some key customers, including last month’s departure of Airtel Africa and two unnamed firms in 2024.
The exit of Airtel, which triggered a statement by the firm to shareholders via the Capital Markets Authority, did not impact the group’s financial statements in six months through to June 2025 but is expected to have a bearing on Scangroup’s topline at the end of the year.
WPP Scangroup remained in the red for the period but cut its half-year loss to Sh208.3 million from Sh252.3 million previously on lower operating and administration expenses.
The expenses fell by Sh32 million to Sh1.08 billion from Sh1.1 billion, but were higher than gross profit, which fell to Sh814.5 million from Sh972.3 million previously.
The 16 percent reduction in gross profit was attributed to a challenging trading environment and a reduction in client spending.
The loss reduction was further aided by a drop in forex losses from Sh250.9 million to Sh6.4 million from the Kenya shilling stability.
Last month, WPP Scangroup appointed Ms Kaggwa as its interim CEO after the sudden departure of her predecessor, Patricia Ithau.
Ms Kaggwa said the firm is stuck in the middle of a disruption, which has seen advertising through traditional media drop off while spending on digital has ramped up, but the medium is fragmented.
