Dentsu International anticipates headcount reduction of 8% by end of 2026

United Kingdom – Dentsu International is set to slash 8% of its global headcount, accounting to around 3,400 employees, amidst the agency’s plans to refine its strategic focus to ensure long-term, sustainable growth and a return to profitability.

Dentsu International has confirmed said news to MARKETECH APAC, but declined to give more specific details on the exercise, including queries on how much of the workforce per region, including Asia-Pacific, will be affected by this.

“As part of this transformation, we anticipate a headcount reduction of approximately 8% by the end of 2026. This reflects our commitment to evolving our business—reducing central demand and enabling local leadership to drive growth more effectively. We are fully focused on supporting our people through this transition with care, transparency, and respect,” they said.

The agency also added that this move is in response to the rapidly evolving industry landscape and intensifying global competition, laid in its latest ‘Group Mid-Term Management Plan’.

“Our strategy centres on empowering local teams to win globally, expanding into high-growth areas such as sports and entertainment, and accelerating investment in technology and AI to enable smarter, more efficient ways of working. These changes are designed to strengthen our client-centric approach and enhance our ability to deliver value at speed and scale,” Dentsu International added.

The move follows after Dentsu had revised its 2025 full-year outlook, now forecasting an operating loss of ¥3.5 billion, a significant downgrade from its earlier estimate of ¥66 billion in operating profit.

The international division’s difficulties, especially in customer experience management (CXM) and creative services, have weighed heavily on overall results. The company attributed the decline to project losses and changes in client marketing strategies.

To address these issues, Dentsu plans to cut annual operating costs by ¥52 billion ($355 million) by fiscal 2027, surpassing its original target of ¥50 billion. The group is also seeking strategic partnerships for its overseas businesses and increasing investment in data, technology, and AI to strengthen its market position.

Dentsu Global CEO Hiroshi Igarashi described the company’s restructuring as an urgent measure in response to the “extremely challenging” performance of its international operations, particularly in the Americas and Europe, where revenue growth has been negative. “I deeply regret this situation and offer my sincere apologies on behalf of the company,” Igarashi said, adding that rebuilding the business foundation is critical to restoring profitability.