The new WPP boss has unveiled a new strategy that will return the advertising agency to growth.

Mark Read said the plan will reduce the number of agencies they work with and use the savings to hire more talent in New York and invest in technology.

The turnaround strategy will cost the group £300 million over the next three years.

WPP has lost 40% of its value in the last year.

Read said: “The restructuring of our business will enable increased investment in creativity, technology and talent, enhancing our capabilities in the categories with the greatest potential for future growth.”

“As well as improving our offer and creating opportunities for clients, this investment will drive sustainable, profitable growth for our shareholders.”

The advertising group’s previous boss, Martin Sorrell leave amid allegations of personal misconduct and is now running his own advertising agency, S4 Capital.

On the news of the strategy, analysts at Liberium said they were giving it a “cautious welcome”.

“We will hear more at the (capital markets day) later today but our initial view is that WPP is taking the approach RELX took post its problems in 2008/2009, namely recognise the share price will not see much of a recovery short term, focus on running the business and accept the need to deliver to re-rate,” said the stockbroker.

“Therefore, we do not see much of a catalyst for the shares short-term.”

Shares (LON: WPP) jumped over 5% in morning trading and are currently up 3.89% (0925GMT).