Dentsu Probes Strategic Reset Beyond Japan: A Close-Up
In the cramped world of global advertising, Dentsu’s international arm is wobbling and the group is contemplating sharp moves to steady the ship.
Dentsu explores bold strategic options for its international divisions amid weak performance eyeing agency sales or partnerships to reshape global operations.
Dentsu’s stronghold its Japan division still delivers. In H1 2025, it grew organically by 5.3%, accounting for about 42 % of group revenue. But the rest of the world tells a different tale: Asia‑Pacific dragged performance down at 8.9%, but tipping global growth into the red at 0.2% .
That structural gap has prompted CEO Hiroshi Igarashi to say the company is open to “comprehensive and strategic partnerships” abroad. He has stopped short of confirming outright sales but made clear that nothing is off the table .
What’s on the Table: Options Aplenty
Behind the scenes, external advisors are reviewing bold fixes: possible divestments of under‑performing agencies, capital injections, outsourcing of corporate functions, even partnerships. Still, decisions haven’t been made yet .
One plan under consideration: trimming roughly 8 % of international staff about 3,400 roles mainly in back‑office and HQ functions. The aim: slash costs to the tune of JPY 52 billion/$340m by 2027 .
Restructuring in a Shifting Industry Landscape
The timing isn’t accidental. Global agency groups are consolidating IPG and Omnicom pursue a game‑changing merger, while WPP wrestles with AI disruption and stagnant growth .
In that context, Dentsu’s willingness to off‑load or partner overseas is a tacit admission: bloated structures no longer cut the mustard. There’s now a sharper focus on efficiency and measurable ROI, digital, data and technology are growing faster, and Dentsu may be seeking to concentrate resources where it retains advantage .
