Dentsu considers cutting 160 international units by 2028

Japanese advertising giant Dentsu is considering the elimination of up to 160 international units by 2028 as part of a major restructuring plan. The company aims to reduce 70 to 80 entities this year, with an additional 50 to 80 potentially cut by 2028. This move follows a period of macroeconomic uncertainty and a record loss of 327.6 billion yen in 2025.

In the first half of 2026, Dentsu reported net sales of 583 billion yen, a 3.7% increase compared to the previous year, though organic growth was limited to 0.3%. While the Japanese market saw a 5% increase, other regions faced challenges, including a 5% contraction in the Americas and a 0.2% increase in the EMEA region. The company's operational margin stood at 12.3%.

Dentsu is shifting its strategic focus toward its media division, including brands like Carat, iProspect, and dentsu X, which have shown more resilience than the creative and Customer Experience Management (CXM) sectors. The group has also adjusted its profitability goals, postponing the target of having no loss-making markets from this year to 2027.