WPP appoints Microsoft exec Cindy Rose as CEO

(Sharecast News) - Troubled advertising agency WPP has appointed Microsoft executive Cindy Rose as chief executive to succeed Mark Read who will step down on September 1.

Rose, who has held senior leadership positions for nine years at the software giant, is currently chief operating officer of global enterprise, helping companies use digital technology and AI to drive business, an area where WPP has been struggling to compete.

A dual UK and American national, Rose has been a WPP non-executive director since 2019 and will be based in both London and New York.

Her appointment comes a day after WPP issued a profit warning, slashing annual profit forecasts as it failed to win new clients amid a weakening economic outlook and the growing threat from artificial intelligence. The news saw its shares plunge 19%.

The company said it expected full-year organic revenue less pass-through costs - a main measure of its performance - to fall by 3-5% with a decline in operating margin of 50 to 175 basis points. Second-quarter revenue fell more than expected as clients cut back on spending and job loss costs fed through.

Advertising agencies face growing competition from AI, which allows companies to design their own marketing campaigns for a fraction of the cost.

Reporting by Frank Prenesti for Sharecast.com