Dentsu is considering partnerships and possible divestments to revive its struggling international operations, even as its Japan business remains strong with 5.3% organic growth in H1 2024. The overseas arm, however, posted a sharp decline, led by -8.9% in Asia-Pacific, dragging overall group performance down.
After years of acquisition-driven expansion that failed to deliver, Dentsu is restructuring by focusing on core markets in Japan and the U.S., revamping overseas media operations, and cutting 8% of its international workforce (around 3,400 roles) to save JPY 52 billion by 2027.
CEO Hiroshi Igarashi confirmed external consultants are exploring “comprehensive and strategic partnerships” and did not rule out partial sales, though no decisions have been finalized. Some underperforming units may seek external investment, while back-office functions could be outsourced.
The review reflects Dentsu’s urgency to restore competitiveness abroad while stabilizing international operations and reinforcing its stronghold in Japan and the U.S.