Dentsu Group welcomes Hiroshi Igarashi as its new President and Chief Executive Officer.
Dentsu Group Announces New Management Structure and Leadership Changes
In a significant move, Dentsu Group, the Japanese advertising and public relations company, has announced a new management structure and leadership changes. Effective from next year, Hiroshi Igarashi will take on the role of representative director in addition to his current roles as president and global CEO.
Currently serving as the CEO of Dentsu's Japanese Network (DJN), Hiroshi Igarashi's responsibilities have been expanded to include the role of representative director. This is a key position in the new management structure, marking a significant addition to his existing roles.
Meanwhile, Tim Andree, who is currently CEO of Dentsu's Japanese Network (DJN), will retire from an executive role and take on a non-executive chairman role at Dentsu Group, subject to approval at the next Annual General Shareholder's Meeting in March. As non-executive chairman, Tim Andree will oversee growth and collaboration across Dentsu and in alignment with its strategic objectives.
The changes in leadership and structure at Dentsu Group are part of a broader international restructuring aimed at addressing continued negative growth in regions outside Japan. The company is executing a significant restructuring of its international business units (Americas, EMEA, APAC excluding Japan), with the goal of enhancing operational efficiency and rebuilding foundations.
As part of this restructuring, there will be a workforce reduction of about 8% of global staff (approximately 3,400 employees), primarily affecting corporate and back-office functions internationally. The company aims to achieve cost reductions beyond the initial target, now projected at approximately 52 billion yen annually by 2027, with an operating margin target of 16-17% for FY2027.
The board changes also support Dentsu’s strategic focus on integrating marketing, technology, and consulting capabilities worldwide, with a strong corporate governance framework under Tim Andree's chairmanship.
Toshihiro Yamamoto, the current president and CEO of Dentsu Group, will step down from his roles on January 1, 2023. Hiroshi Igarashi will succeed him as president and CEO.
In summary, Hiroshi Igarashi will lead day-to-day global operations and growth strategy as CEO, while Tim Andree will provide non-executive board leadership, spearheading governance during a challenging period marked by international restructuring and workforce downsizing to restore profitability outside Japan.
Hiroshi Igarashi's expanded role as representative director signifies a significant addition to his responsibilities in the newly announced management structure, overseeing the growth and finance of the business. With Tim Andree's transition to a non-executive chairman role, he will continue to contribute to the company's growth and collaboration across business units, aligning with strategic objectives.
