Ad agency WPP to cut jobs amid downturn - paper

LONDON Jan 4 (Reuters) - WPP Plc (WPP.L), the world's second-largest advertising company, is to cut several thousand jobs worldwide as the economic downturn affects demand, the Observer newspaper reported on Sunday, citing a company insider.

Most of the job losses are expected to come in western Europe and North America, although the group is set to expand staff numbers in South America, eastern Europe and Asia, the paper said.

WPP could not be immediately reached for comment.

Chief Executive Martin Sorrell said last month he would need to work to manage the balance between headcount and revenue, citing the United States, Britain, France, Germany, Italy and Spain as markets under pressure. (Reporting by Victoria Bryan; Editing by David Holmes)