09:23 AM EDT, 04/02/2025 (MT Newswires) -- Stagwell ( STGW ) said Wednesday it is targeting $5 billion in annual revenue by the end of 2029 and planning $80 million to $100 million in cost reductions.

Ahead of a virtual investor day, the marketing services company said it aims to achieve its revenue target without expanding debt ratios and expects cost savings from AI-based efficiencies, with $60 million to $70 million in reductions completed by the end of 2025. Stagwell ( STGW ) named John Kahan as its first chief AI officer.

Stagwell ( STGW ) also said it also plans to simplify its capital structure by converting all Class C shares into Class A stock and reorganizing its business units to align with client demand.

Stagwell ( STGW ) reaffirmed its 2025 guidance, projecting about 8% net revenue growth and adjusted earnings of $0.75 to $0.88 per share. Analysts polled by FactSet expect adjusted EPS of $0.84.

Shares of the company were up 2.2% in recent premarket activity.