Dentsu Aegis Network restructure to impact 9% of UK staff

It is part of plans to implement simplified business model.

DAN: Jarvie has been implementing changes in UK
DAN: Jarvie has been implementing changes in UK

Dentsu Aegis Network is to cut hundreds of jobs across its UK operations as part of a restructuring of the global business.

The restructure will impact 9% of UK staff, who will enter a consulation period in January. The 9% figure comprises redundancies as well as some "non-client-facing and functional roles" moving outside London. 

DAN employs about 4,000 people in its UK office at Regent's Place, London, with 9% equating to 360 people. 

The company announced last night on the Japanese Stock Exchange that there will be restructuring across the UK (including the global headquarters of the international business), Australia, Brazil, China, France, Germany and Singapore markets, leading to job cuts. 

In a statement released yesterday, DAN revised its forecast operating profit down by 38.2% to ¥60.9bn (£4.2bn) for the year ending 31 December. Net profit has also been revised down by 82.7% to ¥6.2bn compared with a previous forecast of ¥35.8bn.

DAN explained that it will implement a "simplified" business model across the UK, Australia, Brazil, China, France, Germany and Singapore in 2020 to "future-proof" the business. This will be in three lines of business: creative, CRM and media.

The company said: "These lines of business have been designed around client needs and will ensure we are set up to help clients win, keep and grow their best customers – by being data-driven, tech-enabled and idea-led.

"This will accelerate our ability to deliver integrated solutions to our clients and ensure our services are easier to navigate and set up for success in the mid-long term."

DAN UK has already been making changes to its business. Last month, chief executive Euan Jarvie announced that the  Amplifi media investment teams will move into individual agencies, including Carat, Vizeum and Dentsu X. This led to the departure of Amplifi chief executive Pippa Glucklich.

There have also been a string of other high-profile departures from the business this year, including Gyro chair Kate Howe, who is joining MSQ Partners in February; Dentsu global creative chief executive Dick van Motman, who is departing at the end of the year; and iProspect global president Ruth Stubbs is to become EMEA chief executive of Wavemaker in early 2020.

Jarvie said: "Just as many of our clients’ businesses are facing change, we are also reviewing and evolving our business to ensure we meet their changing needs. At the start of 2019, we began to set the foundations for a more efficient business, working hard to streamline operations and be 100% client serving.

"We have started to build momentum as a result of these changes with a number of significant wins under our belt including Beiersdorf, Legal & General and Vodafone. The UK&I remains strategically important for Dentsu and we are now building on the foundations set in 2019 in order to deliver greater success for ourselves and for our clients in the long term."

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