WPP faces potential $10m loss for H1 2020, plans $70m cost savings with pay cuts and redundancies

WPP AUNZ’s net sales fell 22% in April, resulting in a predicted EBIT of “between breakeven and [a] $10m loss for the first half of 2020”, CEO Jens Monsees has revealed during the company’s annual general meeting this morning.

Monsees is, however, confident that “our strategy is exactly where we need to be to benefit in the post COVID-19 new norm” and said $70m in cost savings will largely be achieved through pay cuts – which were rolled out to the entire team on a voluntary basis last month – and “partly, also redundancies where necessary”.

Monsees presenting at the AGM