After tech giants now, companies from other sectors are also added in the list of layoffs.
Published: August 14, 2025 6:19 PM IST
There was constant news of layoffs in tech giants globally, especially due to more use of artificial intelligence which has reduced the dependency of human beings. But now there is a report of major job cuts by the big advertising agency Dentsu.
Japanese advertising giant Dentsu Group Inc. announced plans to reduce 3,400 positions outside Japan and about 8% of its international workforce according to a statement dated August 14, 2025.
Why Is Dentsu Laying Off Employees?
The company achieved record-high net revenue and operating profit in the first half of the year. Dentsu said its international operations continued to post negative growth across all three major regions, creating “an extremely challenging performance.”
The group cited a slower-than-expected recovery in its customer experience management (CXM) unit and losses in its creative segment. They also expect broader macroeconomic uncertainty. Due to which it has trimmed its full-year organic growth forecast to nearly zero.
What Dentsu Says On Layoffs?
Dentsu also reported goodwill impairment losses of ¥86 billion in the Americas and EMEA and announced it will suspend its interim dividend.
President and Global CEO Hiroshi Igarashi said the headcount reduction is part of a broader cost-cutting plan to save about Rs 3,120 crore annually by 2027. “I am acutely aware that reforming international business is an urgent issue,” he added.
“In our international business, we will focus on fundamental improvement measures to restore its profitability and competitive advantage while striving to enhance the corporate value of the entire group, growing as One dentsu,” he added.