WPP AUNZ delivers $71m in cost savings post transformation plan

February 25, 2021 11:33

WPP AUNZ has delivered $71 million in cost savings for 2020, including $13.6 million in government subsidies received to support jobs, following the implementation of CEO Jens Monsees’ transformation plan for the business and undertaking cost cutting measures in response to the COVID-19 pandemic.

The installation of the campus model in Brisbane, Adelaide and Perth, which was announced during last year’s report and consolidates WPP’s offices in each market, saved the business $2.7 million. Meanwhile employee costs were adjusted by 11%, following a mix of both temporary and permanent cost actions, such as its voluntary pay cut program introduced in April and the board committing to a 20% reduction in salaries and fees for an initial period of three months.

Savings of $13 million in general and administrative costs were also made through the reduction in travel, entertainment, and refraining from entering awards.