Dentsu to cut 11% of its workers in 7 markets, including Singapore
Japanese advertising agency Dentsu will lay off 11 per cent of its employees in seven markets, including Singapore.
The decision comes as the company slashed its earnings forecast for the year, due to the ongoing under-performance of some markets over recent quarters, it said.
The company added that it has planned a number of strategic initiatives and restructuring to accelerate the implementation of a new business model and deliver improvements and efficiencies to its business and clients.
These measures will also affect its markets in Australia, Brazil, China, France, Germany and Britain. It will result in an 11 per cent reduction in headcount alongside property rationalisation and other related impacts.
This figure is reported to translate to about 1,400 jobs across the seven markets, or about 3 per cent of the total headcount of the international business.
Dentsu Singapore hires over 80 employees, according to its website. The firm declined comment when contacted yesterday.
The move is expected to save more than 13.8 billion yen (S$170.9 million) of headcount-related costs annually. But the company will incur an estimated total cost of 24.8 billion yen over the next two years.
"We remain committed to these markets to enable their long-term success, but must ensure they are structured appropriately to drive operating margin improvements, deliver revenue growth, and achieve a better service for our clients and experience for our people," said Dentsu's statement on Monday.
The firm downgraded its earnings outlook for the year, slashing its net profit from a projected 35.8 billion yen in August to 6.2 billion yen.
This is the latest round of job cuts in Singapore amid the slowing economy this year. - THE STRAITS TIMES