WPP Names New CEO as Ad Giant Looks to AI Growth

WPP

Key Takeaways

• WPP named Microsoft COO for Global Enterprise Cindy Rose to be its new CEO as the big ad agency focuses more on artificial intelligence.

• Rose will take over Sept. 1, replacing Mark Read, who held the job seven years.

• The news came a day after WPP warned that macroeconomic uncertainty will hurt full-year results.

U.S.-listed shares of WPP (WPP) made a slight comeback from yesterday's big selloff when the advertising giant chose Microsoft (MSFT) executive Cindy Rose to be its new CEO, as the firm moves to deal with the rising use of artificial intelligence in the industry.

Rose will take over from Mark Read on Sept. 1. The company announced last month that Read would be stepping down on Dec. 31 after seven years at the helm. In today's statement, it didn't explain why that date was moved up.

Rose has spent the past nine years in senior roles with Microsoft, where she is currently Chief Operating Officer, Global Enterprise. WPP noted that she "helps the world's largest companies use digital technology and AI to drive business transformation."

Chair Philip Jansen explained that Rose's expertise in the digital transformation of large organizations, including the use of AI, "will be hugely valuable to WPP as the industry navigates fundamental changes and macroeconomic uncertainty."

Rose said WPP continues "to build market-leading AI capabilities, alongside an unrivalled reputation for creative excellence and a preeminent client list."

The company's U.S.-traded shares plunged 18% yesterday when WPP slashed its guidance and warned of reduced client spending because of economic concerns. Despite today's roughly 1% advance, those shares remain near a five-year low. 

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