WPP slashed its forecasts for the first half of 2025 today as it reported “deterioration” in net new business in the second quarter owing to macroeconomic uncertainty and cautious client spending.

In its first-half trading update, the multinational holding company forecast 2025’s first half like-for-like revenue (less pass-through costs) to decline between 4.2% and 4.5%. WPP, which operates Ogilvy, VML, Wavemaker and Burson, now expects revenue to decrease between 5.5% and 6% below previous expectations in the second quarter alone.

Headline operating profits are expected be in the range of £400 million ($744 million) to £425 million ($790 million), down from the guidance that WPP issued at the start of the year. Net new business is now expected to negatively impact WPP’s full-year results, a change from the flat performance the company had previously forecast.

Performance of the Global Integrated Agencies segment sagged in the second quarter and is expected to decline mid-single digits to end the first half of 2025. WPP Media and Ogilvy in particular were affected by lower client spend and net new business, according to today’s update.

In June, WPP lost Mars’s ad business to competitor Publicis, which announced it is developing the bespoke team MarsOne to work exclusively on creative for the manufacturer of Skittles, Snickers, Ben’s Original and Whiskas.

In today’s conference call, WPP CEO Mark Read said he expected the Mars departure to effect 2026’s first-quarter results.

Read said clients are currently conducting business with caution and pointed out increased pressure on WPP’s topline last month.

“Performance in June was worse than anticipated,” Read said. “We are seeing fewer opportunities and opportunities tend to be smaller.”

WPP recently announced that Read will be stepping down from his roles as CEO and board member at the end of the year.

The holding company will provide another update on Aug. 7.