Dentsu plans to cut about 3,400 overseas jobs to trim cost

The reduction, focused on headquarters and back-office functions in markets outside of Japan

Published Thu, Aug 14, 2025 · 05:55 PM

Japanese advertising company Dentsu Group said it will cut about 3,400 jobs in markets outside of Japan, equivalent to 8 per cent of its headcount in the region after reporting operating losses in the second quarter.

The reduction, focused on headquarters and back-office functions in markets outside of Japan, are designed to streamline operation without affecting the company’s growth potential or competitiveness, the company said in a statement on Thursday (Aug 14), after market close.

The move comes as the company reported an operating loss of 62 billion yen (S$542 million) for the quarter ended June, after booking an 86 billion yen impairment loss due to sluggish performance in the US and Europe.

Dentsu now expects to incur an operating loss of 3.5 billion yen this year, compared with a previous forecast of 66 billion yen in operating profit.

The company is also mulling options for its overseas operations, including forming partnerships.

The advertising agency said it’s making “steady progress” to achieve an operating margin on 16 per cent to 17 per cent in fiscal 2027 and is expected to deliver approximately 52 billion yen in annual operating cost cuts, exceeding the target, it said.

Dentsu’s stock has declined 17 per cent this year as of Thursday, while the benchmark Topix index has risen 9.8 per cent. BLOOMBERG

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