Markets

WPP Q3: Sorrell's Obsession With "Armageddon, Apocalypse" and Lehman Continues: 11,232 Jobs Lost

By Jim Edwards

Updated on: October 30, 2009 / 1:07 PM EDT / MoneyWatch

WPP (WPPGY) chief Martin Sorrell seems to have a strange obsession with the collapse of Lehman Brothers and "Armageddon and Apocalypse." He's linked them in three of WPP's recent quarterly statements: Q1, Q2 and now Q3.

WPP reported revenues up 16.7% to Â£2.007 billion, but down excluding acquisitions. Due to Europe's non-transparent financial disclosure laws, profit and expenses were not discussed. But the Q3 2009 statement once again showcased Sorrell's fixation on the Lehman collapse and the Biblical consequences thereof (emphasis added):

Confidence, however, remains fragile amongst consumers, because of the shadow of high unemployment levels and amongst corporates, because Armageddon and Apocalypse now were barely avoided in September 2008.
As the Company's revenue growth figures for the third quarter indicate, things are certainly "less worse" than the second quarter and July, August and September, have all shown improvement over April, May and June. And so they should, given the massive fiscal and monetary stimuli pumped into the world's economy, since Lehman collapsed and given the fact that, Armageddon having been avoided, we are cycling easier comparatives.

Readers of WPP's financial statements will recognize that language - it was largely cribbed from WPP's Q2 2009 statement:

-- although there is little doubt that CEOs and CMOs feel better about the general economic environment, Armageddon or Apocalypse now having been averted, there is little evidence of better heads and stouter hearts translating into stronger order-books or investments â€" at least, yet.

The Lehman link initially appeared in WPP's Q1 2009 release:

On a like-for-like basis, excluding the impact of acquisitions and currency fluctuations, revenues were down 5.8%. This reflected cuts in client spending in reaction to the global financial and economic crisis, essentially after both the sub-prime crisis and the collapse of Lehman Brothers in September, as de-stocking followed declines in consumer spending.

And finally: WPP disclosed how many jobs it has cut across its agencies although you have to do a little math to figure it out. The company reported headcount has sunk to 101,333, down from 112,565 in December 2008. That's 11,232 jobs gone -- far more that the 7,800 previously admitted to.