Core Insights - The global advertising industry is undergoing significant changes due to the rise of artificial intelligence (AI), leading to layoffs and cost reductions, particularly in India [1][2] - Major advertising firms, including Omnicom and Interpublic Group, are merging to adapt to these changes, resulting in job cuts and a restructuring of traditional business models [3][4] Industry Transformation - AI tools are enabling clients to create content in-house, reducing reliance on advertising agencies and leading to a shift in creative work [2][10] - The Indian advertising market is projected to grow from ₹6.25 billion in 2024 to ₹13.06 billion in 2029, driven by digital advertising and a young population [2] Merger Impact - The $13 billion merger between Omnicom and Interpublic Group will create the world's largest advertising network, with combined revenues exceeding $25 billion [3] - The merger has already resulted in the closure of several well-known agencies and is expected to lead to 4,000 layoffs globally, affecting Indian offices as well [4][12] Cost Efficiency and Job Cuts - The merger is anticipated to streamline operations by eliminating overlapping functions, particularly in senior executive roles, with up to 40% of such positions potentially being cut [5][11] - Agencies are increasingly focusing on hybrid roles and upskilling teams to adapt to the changing landscape, with a shift towards data, tech, and AI capabilities [10] Employee Sentiment - There is a prevailing sense of dread among employees in the advertising sector regarding potential layoffs and performance improvement plans [8][12] - The focus on creative services is diminishing, with a greater emphasis on media practices, indicating a shift in agency priorities [9]