Dentsu Group Experiences a Change in Leadership: Hiroshi Igarashi Assumes the Role of President and CEO
In a significant move, Dentsu Group, the global advertising and public relations company, has announced changes in its management structure and board, effective from next year. The changes come following the retirement of Toshihiro Yamamoto as president and CEO of Dentsu Group, who will step down on January 1, 2023.
Hiroshi Igarashi, the current CEO of Dentsu's Japanese Network (DJN), will succeed Yamamoto as president and CEO of Dentsu Group. In addition, Igarashi will take on the role of representative director, subject to approval at the next Annual General Shareholder's Meeting in March. The specific responsibilities and scope of his authority as representative director will be determined after his approval.
Tim Andree, who has been instrumental in Dentsu's growth and collaboration, will take on a non-executive chairman role at Dentsu Group, also subject to approval at the same shareholder's meeting. Andree's role will focus on overseeing growth and collaborating on alignment at Dentsu Group. The details of his new role, including his specific responsibilities and the scope of his authority, will be determined after his approval.
The international business of Dentsu Group has been underperforming compared to the strong and growing Japan segment. In an effort to restructure and improve its performance, Igarashi has announced a series of measures. These include a major overhaul of the struggling overseas operations, resulting in a workforce cut of approximately 3,400 jobs, about 8% of the international staff.
Moreover, Igarashi plans to implement a "comprehensive and strategic partnership" plan that may involve selling, merging, or partnering with third parties to strengthen international business competitiveness. He has also coordinated with external advisors to re-evaluate and possibly restructure or divest underperforming international units.
The aim is to reduce annual operating costs by around ¥52 billion ($355 million) by fiscal 2027, focusing on restoring profitability and competitive advantage abroad while maintaining sustained growth in Japan.
In summary, under the leadership of Hiroshi Igarashi, Dentsu Group is embarking on a critical restructuring phase, particularly targeting the international business's turnaround through job cuts, strategic partnerships, and possible asset sales or mergers to improve its global performance. The changes in the management structure and board, including the addition of Tim Andree as non-executive chairman, are expected to further strengthen Dentsu Group's growth and collaboration efforts.
- The growth of Dentsu Group's international business is a priority for Hiroshi Igarashi, who, upon becoming the new CEO, has announced a series of measures to improve performance, including job cuts, strategic partnerships, and possible asset sales or mergers.
- The finance department of Dentsu Group will be closely involved in the restructuring of its international operations, aiming to reduce annual operating costs by around ¥52 billion ($355 million) by fiscal 2027, as part of the comprehensive strategy to restore the international business's profitability and competitive advantage.
