Publicis Groupe Unveils Major Restructuring Plan for 2016

Brands to be split into four major hubs

Publicis Groupe will undergo a transformation, effective Jan. 2, that will divide the group's current properties into four hubs focused on creative, media, digital/technology and healthcare, chairman and CEO Maurice Lévy announced today. The move is designed to put client services at the heart of the group's mission.   

The change comes as Publicis Groupe has decided to focus on a new ambition—"to be the admired force for business transformation driven through the alchemy of creativity and technology," Lévy said. 

He made the announcement in a video posted to YouTube (which you can see below). Each of the four hubs will be run by a chief client officer. The four chief client officers will report to Laura Desmond, former CEO of Starcom MediaVest Group, who will take on the role of group chief revenue officer for Publicis Groupe and chair of the U.S. committee, effective in the new year. 

"Each of the four hubs will leverage shared tools, platforms and back-office services," Lévy said in the video. "This will simplify our process and reduce our costs, thus increasing our competitiveness and profitability without compromising the crux of our business." 

Here's a look at how the Publicis brands will be grouped moving forward: 

1. Publicis Communications: Arthur Sadoun will head up Publicis Communications as its new CEO. This hub will include Publicis Worldwide, MSL, Nurun, Saatchi & Saatchi, Leo Burnett, BBH and Marcel. 

2. Publicis Media: The media arm of Publicis will be led by Steve King. Starcom Mediavest, ZenithOptimedia, Vivaki, Performics, MRY and Moxie will fall under King.  

3. Publicis.Sapient: Publicis.Sapient, the digital hub, will be led by Alan Herrick and include Sapient Consulting, SapientNitro, DigitasLBi and Razorfish. 

4. Publicis Healthcare: Nick Colucci will head up the healthcare hub of Publicis. This hub is a newly integrated health and pharma offering from the group. 

According to Lévy, each brand under the Publicis Groupe umbrella will continue to function as its own entity, with its own identity and brand name. However, the shift is designed to flip the current agency and holding company on its head and focus on the client's needs.

"Clients expect more for less, meaning more services at a lower cost," Lévy said. "We opted for a new ambition, incredibly demanding, putting our client at the core of our organization." 

Other notable highlights from the announcement include the introduction of Publicis One, which will be headed up by Jarek Ziebinski. According to Lévy, the group generates roughly 90 percent of its revenue from just 20 countries. Publicis One is designed to help manage operations outside those 20 countries—in the other markets that deliver the remaining 10 percent of the company's revenue.