GroupM across multiple markets is undergoing a major organizational overhaul, it is set to impact up to 45% of its U.S. workforce, according to remarks made by CEO Sharb Farjami during a company-wide town hall recently. The restructure, which includes the formation of a new Media Management and Delivery (MMD) division, aims to unify core business functions and streamline operations under a single operating model.
Sharb Farjami, CEO of GroupM North America, informed employees during a company-wide town hall on Friday afternoon that a significant organizational restructure will “impact about 40% to 45% of our entire workforce,” according to ADWEEK.
“This has been a pretty tough week for us,” Farjami said. “There have been colleagues that have left our business… It can feel very destabilizing.”
When asked for clarification on what “impacted” meant, a GroupM spokesperson told ADWEEK that the 40%–45% figure “does not refer to people who are departing the business,” but instead relates to “how we’re bringing teams together.” The spokesperson also confirmed that the figure applies specifically to U.S.-based employees.
As part of the restructuring, a new department—Media Management and Delivery (MMD)—will consolidate investment, Nexus, and campaign reporting functions into a single division. Leadership did not confirm whether the affected roles would involve layoffs, reassignments, or other organizational changes.
During the 2 p.m. ET town hall, agency executives emphasized that the transformation is part of a larger shift toward a “single operating model” for GroupM North America. “The agency brands will continue to exist… What they cease to be is individual, distinct business units,” said one executive, whose identity was not disclosed. “They will cease to operate business P&Ls in the market, but they will continue to be homes for our clients.”
Employees were told to expect a follow-up email outlining next steps and providing a question form to address concerns.
A leaked internal memo from GroupM CEO Brian Lesser, dated earlier in the week, also described the move toward a unified operating model, changes in agency titles, and the integration of Nexus and investment functions.
“As part of this process, we’ve had to make difficult decisions as we work to improve our team structure and reduce overlap,” Lesser wrote in the memo. “This will affect some roles across our markets.”
Following the town hall, Farjami sent an additional note to employees, reiterating the changes. In the message, which ADWEEK obtained, he acknowledged: “This has been a challenging week, especially for those whose roles were impacted. We’re providing support through WPP’s Employee Assistance Program for team members leaving the business, and we have internal employee resources to help you navigate the changes, too.”
Transcripts of the note from Farjami:
Team,
Thank you to everyone who joined today’s all-hands. For those who couldn’t attend, I want to acknowledge this week’s changes and what they mean for all of us at GroupM.
This has been a challenging week, especially for those whose roles were impacted. We’re providing support through WPP’s Employee Assistance Program for team members leaving the business, and we have internal employee resources to help you navigate the changes, too. These decisions were not made lightly, but they are necessary. As we evolve, we’re building a stronger, more unified GroupM that delivers more opportunity for our people and greater value to our clients.
Evolving our agency brands, simplifying our structure, and integrating Nexus, Investment, and Campaign Reporting into one unified integrated media team will bring the full power of GroupM to market. This team is a strategic response to the market’s demand for something different. The focus areas — marketplace & partnerships, media activation, media solutions, product innovation, and commerce — position us to lead in an AI-enabled era. We’re also formalizing a client growth & operations team at the center to better support our client teams with greater agility.
Many of our clients see the value in this vision as they evolve their own businesses. They are optimistic, and so am I.
As this new chapter takes shape, we’ll grow into it together. Ensuring we listen to you through this change will always be at the front of my mind. Please reach out to your manager or the People team for guidance, and you can continue to ask questions or share feedback here. I’ll keep you updated as we move forward.
Thank you for your passion and dedication to GroupM, our clients, and each other.