Wunderkind trades blows with wounded WPP as ad giant's shares slump
Ajaz Ahmed, who set up ad agency AKQA as a student in 1994, told The Mail on Sunday that London-based WPP had lost its way and was 'more focused on winning awards' than winning the clients needed to compete on the world stage.
It came as one of Britain's most senior media bosses said WPP had 'lost a lot of business' and was failing to convince prospective clients of its strengths.
But insiders at WPP have hit back, saying Ahmed has 'an axe to grind'.
WPP has been beset by falling profits and the rise of artificial intelligence that threatens to make ad agencies extinct.
The firm lost its crown as the world's biggest advertising group to France's Publicis last year and its share price has fallen 44 per cent in the past 12 months. It issued a profit warning this month, citing 'continued macro uncertainty' as clients cut back on ad spending due to turmoil in the global economy.
But Ahmed said the firm's problems ran deeper, saying WPP had 'failed to deliver meaningful growth' with 'little evidence of a compelling long-term vision'.
He said: 'Its UK-centric structure feels parochial in a landscape where global growth is driven by US-based companies.' Ahmed also said WPP's attempt to get workers back into the office four days a week had 'demotivated staff and damaged trust'.
But a well-placed source at the firm said Ahmed had 'left a mess' at AKQA and this was an attempt to 'settle a score', adding: 'Lots of board members had wanted to fire him but he was protected by some senior management.'
Another insider wished Ajaz 'would move on', accusing him of making 'very generalist claims'. 'A lot of people who leave WPP have a habit of commenting on it,' the insider added, a reference to its former boss Sir Martin Sorrell, who left in 2018.
AKQA shot to fame due to its focus on the growing influence of the then-new internet advertising market. Its clients have included video streaming giant Netflix, payment firm Visa and taxi app Uber.
In 2012, WPP took control of AKQA in a deal valuing it at nearly £350 million. After more than a decade under WPP, Ahmed quit as head of AKQA in October last year and has re-emerged as the head of a new agency called Studio.One.
He is not alone in his assessment of WPP. One of the UK's most senior media executives told The Mail on Sunday the ad giant had 'lost a lot of business' to Publicis.
The source also said potential clients were confused by WPP's efforts to use AI to create cheaper and faster marketing campaigns, saying: 'It says it is investing millions. But what does that mean?'
This month, WPP said Microsoft executive Cindy Rose would replace Mark Read as chief executive at the end of the year.
A WPP spokesman said: 'Ahmed is now competing with his former employer. After two years of underperformance, AKQA is back winning business.
'WPP's AI strategy has been well received, by existing and prospective clients as demonstrated in significant extensions and wins in the past 12 months such as Amazon, Johnson & Johnson and Unilever.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
22 minutes ago
- The Independent
Alaska Airlines to launch nonstop flights from Seattle to London and Reykjavik
Alaska Airlines is set to launch two nonstop routes from Seattle to London Heathrow and Reykjavik, Iceland. The new routes mark the fourth and fifth of at least 12 intercontinental destinations that the carrier says it will serve from its hometown airport of Seattle by 2030. Flights to London and Reykjavik are scheduled to begin in spring 2026, with the nine-and-a-half-hour Dreamliner-operated London service putting the carrier in direct competition with British Airways, Delta and Virgin Atlantic, which typically charge between $250 and $550 for direct one-way tickets. Alaska, however, is yet to reveal prices, but said tickets will be bookable from this fall. The seven-and-a-half-hour Seattle-Reykjavik service, meanwhile, will operate during the summer season using 737-8 Max aircraft, which Alaska Airlines said are "designed for this type of long-range flying". Currently, only Icelandair offers nonstop Seattle-Reykjavik flights, for around $500 one-way. WestJet, Delta and Air Canada all operate stopover services to the Icelandic capital. Alaska said in a statement: "We'll offer daily, year-round services to the British capital — one of the most sought-after international destinations and business markets — on our widebody 787-9 aircraft, featuring 34 enclosed suites with fully lie-flat seats in business class. "London is the largest intercontinental market from Seattle, with more than 400 passengers traveling between the two vibrant cities every day." The London service will be operated by Dreamliners sporting a new green livery inspired by the Northern Lights. Ben Minicucci, Alaska Airlines CEO, said: "With these bold moves, we are accelerating our vision to connect our guests to the world. 'We are seizing this moment to redefine the international experience and level up."
BBC News
22 minutes ago
- BBC News
Canalside development project completed at Staveley's canal basin
A Derbyshire town is looking for businesses to move in after the opening of a new two-storey canalside Moorings building is part of the Staveley Town Deal, a £25m regeneration programme aided by funding from central government that began last year.A total of £3.5m of the £4.5m cost was provided by the fund, with the remaining £1m covered by Derbyshire County authority said it expected the new site "to create between 40 and 60 new jobs". This building is part of the an 85-hectare business park based on the site of the old Markham Colliery, with the regeneration project also hoping to attract visitors to Chesterfield Canal and the surrounding Reaney, county council cabinet member for economic development and regeneration, said the Moorings "will be a fantastic waterside destination for both local people and visitors to enjoy"."We're inviting contact from retail, dining and other businesses looking to relocate or expand into this purpose-built space, and we've already received considerable interest from a number of potential tenants," he said.
Telegraph
an hour ago
- Telegraph
Middle-income workers shoulder biggest tax burden increase
Middle-class workers are shouldering the biggest increase in the tax burden thanks to a stealth raid on thresholds, analysis suggests. The share of income tax paid by those who earn between £43,000 and £61,900 rose from 15.1pc to 17pc between 2021-22 and 2025-26, according to the TaxPayers' Alliance. During the same five-year period, the share of income tax paid by the top 1pc, those earning more than £201,000 a year, fell from 30.7pc to 26.6pc, the pressure group found. It comes as Chancellor Rachel Reeves faces a £50bn black hole in the public finances and declining tax revenue as high-net-worth individuals look to move abroad. Analysis by the Financial Times this month revealed there had been a 40pc rise in directors moving abroad since Labour's autumn Budget. The Taxpayers' Alliance report found the proportion of total income tax receipts increased for every group except for the top 1pc of earners, thanks to a series of stealth taxes first introduced by the Conservatives. Income tax thresholds, including the £12,570 tax-free 'personal allowance', were frozen at the 2021 budget by then chancellor Rishi Sunak until 2025-26. A year later, his successor, Jeremy Hunt, extended the freeze until 2027-28. Despite promising not to raise taxes on working people, Sir Keir Starmer has not ruled out extending the freeze further to 2029-30. Keeping thresholds frozen means earners lose a larger share of their incomes to tax, as inflation pushes up wages in a process known as fiscal drag. The stealth raid means almost 2.9 million more people will pay the basic rate of income tax in 2025-26 than in 2021-22, while over 2.6 million more will pay the higher rate. Including other rates, almost 6 million more people are forecast to be paying income tax than in 2021-22. John O'Connell, chief executive of the TaxPayers' Alliance, said: 'This is the sad but inevitable result of successive governments' assortment of anti-affluence tax policies, which penalise aspiration and success. 'The UK is now trapped in a doom loop with the Chancellor desperately scrabbling around for more cash to fill the fiscal black hole and increasingly finding her only option is to come after the middle classes. 'Rachel Reeves needs to now show some humility and reverse the policies that have done so much to drive away high earners.' The respected National Institute of Economic and Social Research on Tuesday warned slowing economic growth, a weak jobs market and Labour's failure to commit to welfare reform meant Ms Reeves was on course to miss her borrowing targets by £41.2bn. When combined with the £9.9bn of headroom the Chancellor has committed to keeping, it means she is facing a £51.1bn deficit in the autumn that will either have to be solved by raising taxes or cutting spending. The study also underlined the importance for the Treasury's balance sheet to keep the highest earners in Britain. Despite the proportion of tax paid by the top 1pc of earners falling, the group still accounts for more than a quarter of all income tax receipts. Analysis of Companies House by the Financial Times found that 3,790 company directors had left Britain between October and July compared with 2,712 in the same period a year earlier. Significant names have included Richard Gnodde, Goldman Sachs ' most senior banker outside the US, Nassef Sawiris, the Aston Villa co-owner, and British property tycoon brothers Ian and Richard Livingstone. It comes after Labour launched a wide-ranging tax raid after coming to power last year. This included abolishing the non-dom status and tightening inheritance tax rules. Laura Suter, of AJ Bell, said: 'Government tax policy in the past few years has had the dual outcome of pushing some of the wealthiest to leave the UK and also landing more taxpayers with higher tax bills at the same time. 'Together, this means that an increasing proportion of the total tax bill of the country is paid by middle earners, rather than the super-rich. 'Looking ahead, any potential tax-raising measures that Rachel Reeves makes in her next Budget could exacerbate this dynamic further.' Trevor Williams, a former chief economist at Lloyds Bank, previously warned Britain was facing a millionaires' exodus. Mr Williams said: 'Since 2014, the number of resident millionaires in the UK dropped by 9pc compared with the world's 10 wealthiest countries' global average growth of more than 40pc. 'Over the same period, the US saw a 78pc increase in millionaires – the fastest wealth growth [among these countries].' The Treasury insisted that under its Plan for Change it would keep more money in people's pockets. A spokesman said: 'This government inherited the previous government's policy of frozen tax thresholds. At the Budget and the Spring Statement, the Chancellor announced that we would not extend that freeze. 'We are also protecting payslips for working people by keeping our promise to not raise the basic, higher or additional rates of income tax, employee National Insurance or VAT. That's the Plan for Change – protecting people's incomes and putting money into people's pockets.'
