Dentsu plans to cut 2% of its workforce in the UK and Ireland as part of a proposed restructuring, with 4% of roles currently under negotiation.
A total of 67 people are scheduled to retire.
The campaign understands that the reorganization is not motivated by cost-cutting, but is aimed at enabling Dentsu to hire in the right areas for future growth.
The network proposes to combine specialized media effects teams and data analytics teams from elements of the business, such as Merkle and Dentsu’s media departments, to create a single function that serves the entire business. .
Some clients’ leadership teams will also be reorganized under the proposed plan, but only if the client wants services from multiple Dentsu businesses.
The talks will conclude at the end of this month, and Dentsu hopes to establish a new structure at the end of February.
A spokesperson for Dentsu UK and Ireland said: “The needs of our clients and the way we engage with our partners are changing, and in response, we are further evolving our business to become more adaptable and efficient in the way we innovate and deliver results that meet our clients’ needs. ”, now and in the future. ”
The move is in line with Dentu’s new global structure, dubbed ‘One Dentsu’, aimed at simplifying its service to customers across a variety of sectors.
Hiroshi Igarashi, Dentsu’s global president and chief executive officer, called One Dentsu a “cross-service structure,” adding that it allows Dentsu to “integrate capabilities” and organize around its customers.
Dentsu has renamed its creative, media, and CXM “service lines” to “global practices,” and appointed a president for each practice. The reorganization saw the departure of UK-based chief operating officer Nenna Ilometina and chief technology officer Dominic Shine from the global management team late last year.
A spokesperson said: “As part of our evolution as One Dentsu, we are further integrating our capabilities across the group to give our clients easy access to our full range of services locally and globally, resulting in The role of the department has changed.” to be influenced. “
This follows a continued decline in Dentsu’s organic revenue in 2023, which saw declines of -1.6% in Q1, -4.7% in Q2, and -6% in Q3. .
The Japanese parent company told investors in November that it will “continue to control costs in 2023 by taking measures such as freezing hiring, reducing external spending, and reducing travel and entertainment expenses.”
A Dentsu spokesperson added: “In 2024 and beyond, our priority remains our clients and employees, ensuring we have the breadth and depth of experience and expertise to best support our brands and businesses.” he added. [to] Innovate, evolve and grow. We are focused on client outcomes, underpinned by a superior end-to-end experience, building on the solid momentum and progress we have made as One Dentsu across the UK. ”
Network rivals such as WPP, IPG and S4 Capital also reported third-quarter revenue declines. In comparison, Publicis Groupe reported organic growth of 5.3% in the third quarter and released its 2023 figures yesterday, with organic growth of 6.3% up to €13.1 billion ($14.19 billion). ).