Dentsu's CEO, Hiroshi Igarashi, has resigned as the Japan-based global advertising group prepares to announce major losses.
The new chief executive is Takeshi Sano, the CEO of dentsu Japan and the deputy global chief operating officer.
Dentsu said it was making the change to "strengthen our competitiveness by accelerating transformation under the new management structure".
The Nikkei reported earlier that dentsu is expected to record a huge loss for 2025, and set dividends at zero, due to a goodwill impairment related to its international business.
The company confirmed it is considering these matters.
Dentsu had been expected to announce its December quarter results today.
The Japan-based part of dentsu's business, making up 42% of net revenue, is doing well, but the international business has been tanking.
Japan saw organic growth at better than 5% in the September quarter.
All regions of the international business recorded negative organic growth rate for both the three months of the September quarter and the first nine months of the year.
That includes Australia, which continued to “face difficulties” and “continued to decline,” which is part of the APAC region which posted a 10.1% drop in growth.
Dentsu's search for buyers of its international business is reportedly close to collapse
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