WPP Scangroup narrows H1 loss to Sh505m ($3.9m) but warns of layoffs as it restructures for stability.
WPP Scangroup Cuts Half-Year Loss, Warns of Layoffs
Nairobi, Kenya – August 2025: WPP Scangroup, the Nairobi Securities Exchange (NSE)-listed marketing and communications firm, has narrowed its half-year net loss to Sh505 million ($3.9 million), compared to Sh721 million ($5.6 million) in the same period last year.
The company announced that despite the reduced losses, it is planning layoffs as part of a restructuring exercise aimed at cutting costs and improving operational efficiency.
“Our focus remains on returning the business to profitability. Unfortunately, this requires tough decisions, including workforce rationalisation,” the company said in a statement.
The move comes after WPP Scangroup, majority-owned by WPP Plc (UK), continued to struggle with reduced client spending and a tough advertising market across East Africa.
Operating expenses fell by 18%, while revenue dropped by 12%, highlighting the pressure on margins despite ongoing cost-cutting measures.
Restructuring Amid Tough Market Conditions
The layoffs are expected to impact staff across several departments, with the company noting that restructuring is unavoidable if it is to remain competitive in the evolving digital marketing space.
Analysts warn that continued revenue decline may weigh heavily on WPP Scangroup’s recovery strategy, despite the narrowed loss.
The company has previously disposed of non-core assets and cut executive pay in efforts to stabilise operations.
Market Context
The planned job cuts come at a time when many Kenyan firms, including those in the advertising and media industry, are grappling with slowing consumer spending, high inflation, and a weaker shilling against the US dollar.
WPP Scangroup’s share price at the NSE has remained under pressure, reflecting investor concerns over its long-term profitability.