Latest news with #Dentsu
Straits Times
5 days ago
- Business
- Straits Times
Ad giant Dentsu plans to cut about 3,400 overseas jobs to trim sosts
Sign up now: Get ST's newsletters delivered to your inbox The move comes as the company reported an operating loss of 62 billion yen for the quarter ended June. TOKYO - 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, focussed 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 Aug 14, after market close. The move comes as the company reported an operating loss of 62 billion yen (S$539 million) for the quarter ended June, after booking an 86 billion yen impairment loss due to sluggish performance in the United States and Europe. Dentsu now expects to incur an operating loss of 3.5 billion yen in 2025, 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 in 2025 year as of Aug 14, while the benchmark Topix index has risen 9.8 per cent. bloomberg
Straits Times
5 days ago
- Business
- Straits Times
Ad giant Dentsu plans to cut about 3,400 overseas jobs to trim costs
Sign up now: Get ST's newsletters delivered to your inbox The move comes as the company reported an operating loss of 62 billion yen for the quarter ended June. TOKYO - 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, focussed 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 Aug 14, after market close. The move comes as the company reported an operating loss of 62 billion yen (S$539 million) for the quarter ended June, after booking an 86 billion yen impairment loss due to sluggish performance in the United States and Europe. Dentsu now expects to incur an operating loss of 3.5 billion yen in 2025, 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 in 2025 year as of Aug 14, while the benchmark Topix index has risen 9.8 per cent. bloomberg
India.com
5 days ago
- Business
- India.com
Massive layoffs in this company, to sack 3400 employees due to…, not Amazon, Microsoft, Google, Infosys, IBM, TCS, name is…
There was constant news of layoffs in tech giants globally, especially due to more use of artificial intelligence which has reduced the dependency of human beings. But now there is a report of major job cuts by the big advertising agency Dentsu. Japanese advertising giant Dentsu Group Inc. announced plans to reduce 3,400 positions outside Japan and about 8% of its international workforce according to a statement dated August 14, 2025. Why Is Dentsu Laying Off Employees? The company achieved record-high net revenue and operating profit in the first half of the year. Dentsu said its international operations continued to post negative growth across all three major regions, creating 'an extremely challenging performance.' The group cited a slower-than-expected recovery in its customer experience management (CXM) unit and losses in its creative segment. They also expect broader macroeconomic uncertainty. Due to which it has trimmed its full-year organic growth forecast to nearly zero. What Dentsu Says On Layoffs? Dentsu also reported goodwill impairment losses of ¥86 billion in the Americas and EMEA and announced it will suspend its interim dividend. President and Global CEO Hiroshi Igarashi said the headcount reduction is part of a broader cost-cutting plan to save about Rs 3,120 crore annually by 2027. 'I am acutely aware that reforming international business is an urgent issue,' he added. '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,' he added.
5 days ago
- Business
Dentsu Expects to Report 3rd Straight Full-Year Net Loss
News from Japan Economy Aug 14, 2025 20:40 (JST) Tokyo, Aug. 14 (Jiji Press)--Dentsu Group Inc. said Thursday that it expects to post a third straight full-year net loss for this year mainly because of sluggish overseas business. The Japanese advertising firm said it estimates a consolidated net loss of 75.4 billion yen for this year, compared with its previous projection for a profit of 10 billion yen. Last year, the company posted a loss of 192.1 billion yen. The downward revision came as Dentsu booked an impairment loss of about 86 billion yen related to its overseas operations for the first half of the year. The company said its overseas business division will shed some 3,400 jobs, or about 8 pct of the total. Dentsu said it will skip its dividend payments for the first half of the year, adding that whether it will pay second-half dividends is uncertain. [Copyright The Jiji Press, Ltd.] Jiji Press
Business Times
5 days ago
- Business
- Business Times
Dentsu plans to cut about 3,400 overseas jobs to trim cost
[TOKYO] 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
