The firm wants to save £500million annually by 2028, raising fears that more roles could be affected

A major British advertising company has cut more than 1,200 jobs in just six months as concerns grow over the country's employment market.

The latest losses come with nearly 1.76 million people already looking for work and vacancies falling across several industries.

WPP confirmed on Thursday that 1,267 roles were removed between January and June, reducing its total workforce by 1.3 per cent to 97,388.

The London-headquartered advertising group has now cut more than 6,000 jobs over the past 12 months as bosses work to reduce costs and simplify the business.

The cuts come against a difficult backdrop for British workers, with the unemployment rate remaining at 4.9 per cent as the number of available jobs continues to fall.

WPP reduced its wage bill by 5.9 per cent to £3.47billion during the first half of the year, but the lower costs have not yet resulted in stronger earnings.

Pre-tax profits fell by 7.7 per cent to £277million during the six-month period.

Revenue less pass-through costs, the company's preferred measure of sales, also declined by 5.6 per cent to £4.75billion.

WPP had already indicated earlier this year that further redundancies and possible asset sales were planned as part of its efforts to streamline the company.

The group is targeting £500million in annual savings by 2028, raising the prospect that further roles could be affected as its cost-cutting programme continues.

The decline in sales has been particularly sharp in certain client sectors, with telecoms, media and entertainment revenue tumbling 14.8 per cent on a like-for-like basis.

Financial services clients pulled back by 13.4 per cent, while technology sector spending fell 9.2 per cent.

To fight back, WPP has been pouring resources into artificial intelligence, rolling out its Open Intelligence AI-powered data platform and striking new partnerships with Google, Meta and AWS to weave generative AI tools into its operations.

Chief executive Cindy Rose said: "I am encouraged by our first-half performance which is in line with our expectations.

"While legacy account losses continue to weigh, the second quarter saw a further sequential improvement in like-for-like growth, highlighting the momentum we are building across the company."

The broader jobs market paints an equally troubling picture. Vacancies have plummeted to 712,000, roughly half the level recorded in 2022, as employers hold off on bringing in new staff amid what officials have described as a "fragile" economic outlook.

Pay growth has also weakened, with average earnings including bonuses rising just 4.3 per cent, below the 4.5 per cent economists had predicted. Private sector wage increases slowed to 2.9 per cent.

Unemployment has climbed steadily from a low of 3.6 per cent in the summer of 2022, leaving Prime Minister Andy Burnham facing a tough challenge as he prepares a 10-year economic plan.

Yet investors cheered WPP's update, sending shares soaring 23 per cent in early trading.