Talent Network

Dentsu's great shrink: up to 160 overseas entities could disappear by 2028. by: The Malketeer Dentsu is preparing to become a considerably smaller global organisation. The Japanese advertising giant is considering eliminating as many as 160 additional international entities by 2028, accelerating a restructuring that increasingly looks less like conventional cost-cutting and more like a fundamental redesign of the global agency network. Under its newly updated 2026-2028 Mid-Term Management Plan, Dentsu intends to eliminate around 70 to 80 international entities during 2026, with another 50 to 80 potentially disappearing by 2028. That comes after Dentsu already halved its number of international entities between January 2021 and January 2026 from more than 1,000. The people cuts are also well advanced. Dentsu has completed about 88% of the 3,400 international jobreductions announced last year, meaning roughly 3,000 positions have already gone. Around 900 were eliminated during the first half of 2026 alone. But the more consequential number may be 30%. Dentsu wants to reduce Global HQ costs by around 30% by FY2028 compared with its FY2026 plan, while delivering more than ¥50 billion in operating cost reductions by FY2027. Crucially, not all those savings are heading back to shareholders. Dentsu says part will be redirected towards AI, Data & Technology, areas in which it already invested ¥3.7 billion internally during the first half of this year. Its new operating model explicitly talks about agentic workflows, AI-powered planning, automated content activation and AI-driven project management. In other words, Dentsu is not simply replacing expensive offices with cheaper offices. It is replacing organisational complexity with technology. The urgency is understandable. Dentsu's international operations have struggled for years, culminating in a record ¥328 billion net loss in 2025 and massive overseas impairment charges. Takeshi Sano subsequently replaced Hiroshi Igarashi as global CEO with a mandate to turn the international business around. There are signs of recovery. For the first half of 2026, Dentsu reported net revenue of ¥583.1 billion, up 3.7%, while underlying operating profit rose 6.6%. But organic growth was just 0.3%, with Japan doing much of the heavy lifting while the Americas and APAC declined. For Asia-Pacific, the message is particularly interesting. Dentsu has designated APAC its "Next Growth Base", promising investment in high-growth markets, stronger cross-market collaboration and greater integration of media, creative, CXM and business transformation. But it also explicitly intends to "rationalise the business portfolio" to free money for that growth. No individual APAC markets earmarked for cuts have been publicly identified. And that may be the bigger advertising industry story. Omnicom has consolidated agencies after absorbing IPG. WPP is stripping complexity from its own sprawling structure while investing heavily in AI. Dentsu is now moving decisively in the same direction. For decades, global agency power meant more offices, more companies, more brands and more people. The new competitive advantage may be precisely the opposite. Fewer layers. Fewer entities. More technology. A much harder question for every agency operation worldwide: Can you prove you still deserve to exist?

New strategic alliance: Medios Federales + Dentsu. Aug 18, 2026 Medios Federales joins Dentsu's media planning, taking a new step in its growth and the expansion of its proposal for advertisers. This new commercial alliance with Dentsu, one of the leading global communication, media, and digital transformation companies, represents an opportunity to continue bringing the federal network closer to new brands and agencies. The agreement strengthens Medios Federales' ability to connect brands with local and regional audiences through a digital media network with a presence in different parts of the country. In this way, federal coverage becomes a tool for developing strategies that take into account the particularities of each territory. For advertisers, this alliance opens up new possibilities to develop more segmented, scalable, and relevant campaigns, combining the reach of a federal network with the knowledge and closeness provided by local media. The objective is to facilitate strategies capable of connecting with different audiences according to their contexts and territories. The incorporation of Medios Federales into Dentsu's media planning also represents a new link within the ecosystem of partners and publishers Medios Federales work with to continue developing advertising solutions. A collaboration that combines scale, technology, and a truly federal perspective. Medios Federales celebrate this new beginning and welcome Dentsu as part of its partner network. Medios Federales keep growing to expand communication opportunities for brands and strengthen the bond between advertisers, media, and audiences across the country. Discover its network.

Kartik Iyer to retire as dentsu South Asia COO. Dentsu additionally announced the appointment of Saagar Sethi as Chief Business Officer, South Asia. Dentsu has announced that Kartik Iyer will retire from his role as Chief Operating Officer, South Asia, dentsu, effective 17 August 2026. Saagar Sethi has been appointed Chief Business Officer, South Asia, dentsu, effective 1 September 2026. Iyer has been part of the leadership team through a period of change for the industry and the organization. During his tenure, he has played a role in strengthening the operating capabilities, delivery frameworks, and discipline that underpin the business today, while supporting dentsu's broader transformation agenda. As he transitions from his executive role, his experience and perspective will continue to support the organization through his advisory position. "Kartik has been a valued colleague and a steady hand through some demanding years for our industry," said Harsha Razdan, Chief Executive Officer, South Asia, dentsu. "He has played an important role in strengthening the way this business operates, and we are grateful for the experience and perspective he has brought to the leadership team. We are pleased that his counsel will continue to be part of dentsu as he takes on an advisory role, and we wish him every success for the next chapter." Sethi joined dentsu in 2022 and has led the Investment & Trading business. He brings more than two decades of experience across media, commercial strategy, transformation, procurement, and business operations, including senior leadership roles at LG Electronics and Ernst & Young, where he led transformation, sourcing, and operational excellence initiatives across domestic and international markets. "The Indian market is moving faster than any playbook can keep pace with," Razdan said. "Brands here are being asked to show business outcomes, and the distance between a media decision and a commercial result has never been shorter. Our job is to close that distance for our clients. Saagar has spent his career at the commercial end of this business, and putting investment, planning, performance, and operational excellence in one pair of hands gives clients a more direct line to growth. His understanding of how this organisation works makes him the right person to lead this portfolio."