Dentsu International Reorganization Will Lead to 6,000 Job Cuts

Dentsu Group announced today that 12.5{c25493dcd731343503a084f08c3848bd69f9f2f05db01633325a3fd40d9cc7a1} of jobs will be eliminated at Dentsu International as part of a broad restructuring of its advertising and marketing departments, which rebranded from Dentsu Aegis Network in September.

The estimated job cuts are being spread across the organization globally, with a varied number of employees impacted across regions.

The announcement was made today in a filing with the Tokyo Stock Exchange. The filing updated investors on Dentsu’s accelerated reorganization and transformation process. Dentsu initiated its reorganization plans over the past two years and said it speeded up the restructuring in August due to the pandemic.

The process will see the holding company consolidate from 160 brands around the world to six global leadership entities. Additional agency brands will remain in certain key regions as some of the 160 brands in question have already been integrated. While initially led by Dentsu’s largest markets, including North America, the process will impact the organization across all markets and service lines. The company cited a desire to provide a simpler, more integrated solution for clients.

“We believe integrating our business around the consumer is the greatest advantage we can give our clients and the greatest competitive advantage we can give ourselves,” Dentsu said in a statement. “We will do this by accelerating the transformation journey we started last year to simplify further how we operate, delivering even greater agility through a focused portfolio of six global leadership brands with prioritized investment and resources in capabilities of high client demand and growth.”

“In our H1 2020 financial results, we announced a comprehensive review of our business. As we work through this, we will take the critical and necessary steps, that many other companies are taking, to address the impacts the global pandemic has had on our business and ensure we work closely with our people and our clients as we move through this period of accelerated transformation,” the statement continued.

The announcement arrives near the end of a year of sizable changes for Dentsu International.

In April, Dentsu International named DDB International’s Wendy Clark as its next CEO, a role Clark took on in September. At the time it was the latest in a litany of executive leadership changes for Dentsu, including a reorganization of Dentsu International’s leadership team a month prior. At the beginning of the year, Jacki Kelly succeeded Nick Brien as CEO of the Americas. As with other organizations across the industry, Dentsu International’s business was heavily hit by reduced client spending due to the business impact of Covid-19. In April, Dentsu International implemented a series of layoffs, furloughs and salary cuts across agencies.

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