Dentsu Inc. will be restructuring its underperforming business in its seven global markets of Australia, China, Singapore (including regional headquarters), UK (including global headquarters), France, Germany and Brazil.
The restructurings will see the Japanese ad giant, the parent of beleaguered London-based Dentsu Aegis Network (DAN), cut approximately 11% cut of its total headcount in each of the seven markets, which represents about 3% of Dentsu's global headcount.
According to Dentsu, most of the cost of the £179m (24.8bn yen) restructuring will be recognised in FY 2019 ending this December and expects these moves will save £100m (13.8bn yen) in headcount related costs on an annual basis.
Dentsu also announced it is now expecting a further 2% revenue drop to its FY results ending 31 December 2019, and more than a 5% cut to underlying operating profit.
This means its net profit for the year is now forecast to fall from 35.8 bn Japanese yen (US$327m) to 6.2 bn yen (US$57m).
DAN has gone through an upheaval in personnel throughout 2019 after announcing in January it was restructuring its Singapore operations, which saw it lay off around 2% of its workforce. It then made another round of redundancies in July.
The likes Sunil Yadav, the former president for APAC at Amplifi, Kristian Barnes, former chief client officer, and Sean O’Brien, media chairman at DAN and former chief executive of Posterscope and MKTG, all departed after the restructure.
Phil Teeman, the former chief executive of DAN Singapore and South East Asia, Rob Hughes, the former DAN North Asia chief executive, and DAN China chief executive Susana Tsui also all left the agency in quick succession.
DAN executive chairman for the UK and Ireland, Nick Waters, who moved back to the UK after leaving Singapore before the restructuring, left after a decade at the agency.