Japanese Media: Dentsu to Cut 30% of Overseas Units as AI Reshapes the Advertising Industry
AI News Flash: Dentsu Group announced it will cut the number of its overseas subsidiaries by up to 30% before fiscal year 2028, as part of an effort to restructure its sprawling overseas business portfolio in response to AI’s disruption of the advertising industry’s competitive landscape. The move comes as pressure mounts from consulting and tech firms like Accenture and Google, which are using AI capabilities to muscle into the advertising market and upend the traditional business structure of legacy ad conglomerates. The report notes that Dentsu swung back to profit from January to June this year (versus a loss in the same period last year), and is currently pushing through business and organizational restructuring aimed at restoring profitability.