Dentsu, a renowned company, will let go of 8% of its workforce, focusing on strategic refinements instead.
Dentsu Group Announces Global Restructuring Amid Challenging International Performance
Japanese advertising giant Dentsu Group has announced a global restructuring, cutting 3,400 international jobs (8% of its overseas workforce), as it grapples with ongoing client losses, reduced spending, and macroeconomic uncertainty impacting its international markets.
The restructuring, aimed at streamlining operations and reducing costs, comes amid a challenging international performance for Dentsu. The company's international business showed negative growth across all regions in the first half of 2025, resulting in an overall decline of 0.2% year-on-year in organic revenue. This contrasts with strong performance in Japan, where the region generated organic revenue growth of 5.3% during the same period.
According to reports by Medical Marketing and Media, the Americas, Europe, and APAC regions (excluding Japan) experienced the greatest pressure. APAC without Japan, notably China and Australia, saw sharp declines, such as a 12.7% drop in Q2, while Taiwan and Thailand were more stable. The Americas and Europe faced substantial losses and negative revenue growth.
The restructuring will primarily affect positions in corporate and back-office functions. Hiroshi Igarashi, Dentsu's president and global CEO, stated that the Japan business achieved record-high net revenue and underlying operating profit. However, the international business continues to face negative growth across all regions, according to Igarashi.
Large impairment losses of ¥86 billion were recorded due to downward revisions in international business forecasts and reduced growth assumptions. This indicates overvaluation of prior acquisitions or underperformance of these international assets.
Sector-specific issues also contribute to Dentsu's challenges. The CXM business is recovering more slowly than anticipated, and the creative business continues to struggle due to shifts in client marketing strategies and loss of ongoing projects.
Despite these challenges, Dentsu believes these changes will lead to profitability for its international business. The company aims to maintain its competitive positioning while addressing ongoing challenges such as client losses, reduced spending, and macroeconomic uncertainty. The restructuring is part of Dentsu's strategy to improve its overall performance.
In a statement, Igarashi said, "We are taking decisive action to address the challenges we face and position ourselves for long-term growth. Our focus remains on delivering value for our clients and shareholders, and we are confident that these changes will help us achieve that goal."
The restructuring will affect various global offices of Dentsu Group. The company did not specify which offices would be affected or when the changes would be implemented. Dentsu Group, a Japanese-based ad agency group, announced the layoffs in a statement earlier this week.
- The restructuring at Dentsu Group, a Japanese-based ad agency group, aims to streamline operations, reduce costs, and address negative growth across all regions, particularly in the Americas, Europe, and APAC regions (excluding Japan).
- The restructuring, including position changes in corporate and back-office functions, is part of Dentsu's strategy to improve its overall financial performance and maintain its competitive positioning in the business sector, despite ongoing challenges such as client losses, reduced spending, and macroeconomic uncertainty.
