Dentsu to cut 3,400 jobs following poor international performance

Dentsu Group Inc. has announced the layoff of about 8% of its international workforce, roughly 3,400 employees, as part of cost-reduction and restructuring measures aimed at reviving profitability in its overseas operations. The move comes after the company reported continued negative growth in all three of its international regions during the second quarter of fiscal year 2025.

According to the Tokyo-based advertising agency, Japan Business delivered record-high net revenue and operating profit for the first half of the year, marking nine consecutive quarters of growth. However, the international division’s media arm remained stable while its customer experience management (CXM) and creative segments lagged, with the latter hit by project losses and shifts in client marketing strategies.

Global CEO Hiroshi Igarashi acknowledged the layoffs as part of a broader effort to cut annual operating costs by about ¥52 billion by 2027. “Reforming the international business is an urgent issue,” he said. “I deeply regret this situation and offer my sincere apologies on behalf of the company,” he added.

Dentsu also booked ¥86 billion in goodwill impairment losses in the Americas and EMEA, citing weaker forecasts, reduced growth assumptions and currency fluctuations. It now expects a full-year operating loss of ¥3.5 billion and a net loss of ¥75.4 billion and has suspended its interim dividend, the release noted.

Igarashi said the group will focus on ‘fundamental improvement measures’ in overseas markets, explore strategic partnerships and invest in data, technology and AI-driven capabilities. “In our international business, we will focus on fundamental improvement measures to restore its profitability and competitive advantage while striving to enhance the corporate value of the entire group, growing as One Dentsu,” Igarashi noted. He added, “We will overcome this challenging situation… and grow alongside our clients,” he added.