Dentsu CEO axed amid A$2.85 billion write-down
Hiroshi Igarashi (L) and his successor Takeshi Sano
Dentsu Group CEO Hiroshi Igarashi has stepped down, as pre-earnings reports signal the company will book ¥310.1 billion (A$2.85 billion) in impairment charges.
The Japan-headquartered advertising giant confirmed Igarashi’s removal and the promotion of Takeshi Sano to global CEO and president.
Sano has been with the Tokyo-headquartered company since 1992 and is currently the CEO of Dentsu Japan and the deputy global chief operating officer of the whole group.
Takeshi Sano will now take charge of Dentsu Group
Arinobu Soga, the current vice president and global chief governance officer, will also step down.
The notice came ahead of Dentsu’s annual results, which revealed the company’s 2025 losses had surged 70.5% year-on-year to ¥327.601 billion (A$3.03 billion).
Locally, the picture looked bleak too, as the Asia Pacific region saw organic growth go backwards (-6.8%) for the year ended 31 December 2025.
The region’s annual revenue was also down by 7.9% to ¥107.3 billion (A$990 million), with Australia singled out as a “challenging” major market.
However, Dentsu’s “highly disciplined” cost-cutting measures helped significantly boost APAC operating profit, which rose 159% to ¥2.7 billion (A$25.1 million), according to its fiscal report.
These included a major global restructuring announced last August, targeting a reduction of roughly 8% of Dentsu’s international workforce, roughly around 3,400 employees.
By the end of 2025, around 2,100 roles had been cut, with the remainder expected to be completed this year.
Through these initiatives, Dentsu aims to achieve cost savings of around ¥50 billion (A$461.5 million) in FY2027 compared with FY2025.
Dentsu’s APAC operations showed early signs of recovery in the fourth quarter, with growth of 0.3%, improving from a 3.9% decline year-on-year.
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