Dentsu to cut 3,400 overseas jobs amid cost-cutting drive
The action comes after the quarter ended June had an operational loss of ¥62 billion ($424 million)
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Published: Aug 14, 2025 4:39 PM | 1 min read
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As part of a cost-cutting effort, Japanese advertising firm Dentsu Group has revealed plans to eliminate roughly 3,400 positions in non-Japanese markets, or 8% of its regional workforce. Dentsu says the changes are intended to streamline operations "without affecting the company's growth potential or competitiveness," and they would mostly impact back-office and headquarters positions.
The action comes after the quarter ended June had an operational loss of ¥62 billion ($424 million), which was primarily caused by an impairment loss of ¥86 billion due to weak performance in the US and Europe. In stark contrast to its initial prediction of ¥66 billion in profit, Dentsu now projects an operational loss of ¥3.5 billion for the year.
In an effort to adjust to the realities of the global market, the corporation is considering "mulling options including forming partnerships for overseas operations." In fiscal 2027, it said it is making "steady progress" toward an operating margin of 16% to 17% and now anticipates annual operational cost savings of around ¥52 billion ($355 million), above earlier goals.
This year, Dentsu's stock has dropped 17%, trailing the benchmark Topix index, which has increased 9.8%. The layoffs indicate a calculated move to increase profitability in the face of a difficult advertising environment in important foreign countries.
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