Dentsu Announces Major Restructuring: 3,400 Jobs Cut, Dividend Suspended
Japanese advertising giant Dentsu Group has announced significant restructuring measures, including job cuts and a suspension of its interim dividend payment, due to financial pressures. The company reported a net loss of 79.9 billion yen ($541.9 million) for the second quarter of 2025 on Yahoo Finance.
Dentsu's financial struggles are evident in its regional performances. While Japan maintained a strong 5.3% organic revenue growth, other regions struggled with the Americas posting a -3.4% decline and EMEA a -2.4% drop. These challenges led to substantial goodwill impairment losses, totaling 86 billion yen, with the Americas accounting for 68.9 billion yen and EMEA 17.1 billion yen. The company has attributed these losses to operational inefficiencies, market dynamics, and re-evaluations of its business values on Yahoo Finance.
To address these issues, Dentsu will eliminate approximately 3,400 positions across its international operations, representing 8% of its overseas workforce. This restructuring is expected to yield annual cost savings of 52 billion yen. The company aims to achieve fundamental improvements by expediting strategic partnerships for its international business by 2030 on Yahoo Finance.
Dentsu's restructuring efforts are a response to significant financial setbacks, including a net loss of 79.9 billion yen in the second quarter of 2025. The company's performance varied by region, with Japan showing growth while the Americas and EMEA posted declines. Dentsu's job cuts and cost-saving measures are part of a broader strategy to improve its international business by 2030 on Yahoo Finance.
