Dentsu Group announced today that 12.5% of the jobs at Dentsu International will be cut as part of a major restructuring of the company’s advertising and marketing organization, renamed the Dentsu Aegis Network in September.
The estimated job cuts are spread across the entire company worldwide, with a different number of employees being affected regionally.
The announcement was made today in a filing on the Tokyo Stock Exchange. The filing updated investors on Dentsu’s accelerated reorganization and transformation process. Dentsu has initiated its restructuring plans for the past two years and has said it accelerated restructuring in August due to the pandemic.
In this process, the holding company will merge 160 brands around the world into six world leaders over the past two years. Additional agency brands will remain in certain key regions as some of the 160 brands in question have already been integrated. While the process will initially be guided by Dentsu’s largest markets, including North America, it will impact the organization in all markets and service lines. The company referred to a desire to offer customers a simpler and more integrated solution.
“We believe that integrating our business with the consumer is the greatest advantage we can offer our customers and the greatest competitive advantage we can create for ourselves,” Dentsu said in a statement. “We will do this by accelerating the transformation path we embarked on last year to further simplify the way we work and through a focused portfolio of six leading global brands with prioritized investments and resources in skills with high customer demand and high growth to achieve even more flexibility. “
“In our financial results for the first half of 2020, we announced a comprehensive review of our business. As we work through this, we will be taking the critical and necessary steps many other companies are taking to address the impact of the global pandemic on our business and to ensure that we work closely with our people and customers in Time of Accelerated Transformation, ”continued the explanation continues.
The announcement comes towards the end of the year with significant changes for Dentsu International.
In April, Dentsu International named DDB International’s Wendy Clark as the next CEO, a role that Clark took on in September. At the time, it was the latest in a litany of leadership changes at Dentsu, including a reorganization of Dentsu International’s leadership team a month earlier. At the beginning of the year, Jacki Kelly succeeded Nick Brien as CEO of the Americas. As with other companies in the industry, Dentsu International’s business has been hard hit by lower customer spending due to the business impact of Covid-19. In April, Dentsu International implemented a series of layoffs, vacations and wage cuts in various agencies.