2020 has been one hell of a year for brands, agencies, and the global workforce at large. Advertising’s biggest groups have been applying different cost-cutting tactics as the industry continues to feel the full impact of the coronavirus downturn. Despite the strength of its agencies, Dentsu Group is set to bring the hammer down the hardest on job cuts across the group.
As part of its effort to reorganize and slash its agency brands from 160 to six, Dentsu International plans to eliminate 12.5% of its 46,560-person workforce, which boils down to cutting about 6,000 roles.
Dentsu spokesperson attributed the cuts and parent company Dentsu Group’s $855 million restructuring to the “negative impact brought on by the pandemic,” according to reports filled on the Tokyo Stock Exchange recently.
Dentsu Group first announced it would restructure last month in order to jettison redundancies across its business during its third-quarter earnings, which revealed a 14.8% dip in organic revenue. Dentsu International, meanwhile, reported a 14.6% slip for organic sales in the same quarter.
Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.
