Dentsu, the Japan-based global advertising agency, is to make a series of "radical" cuts to its agencies, reducing them to six global brands from 300 internationally.
The move, part of a review started in August, one of many measures in response to the pandemic, is about simplifying the business and reducing operating costs.
Other holding companies, including WPP with its most recent announcement of folding creative agency Grey into digital marketing group AKQA, have been merging and reducing brands.
In a trading update, Dentsu says organic revenue is down 10.9% in the nine months to September. Underlying operating profit fell by just 0.9% to 75.8 billion yen, helped by a range of cost cutting.
The company reported early signs of positive momentum emerging in Australia with improved performance in the quarter, particularly in the CXM line of business.
"We simply have too many brands, almost 300 across both Japan and internationally," says CEO Toshihiro Yamamoto.
"We have already decided to simplify the Japan business into four pillars and internationally to have only six global leadership brands.
"This radical new structure will be more logical and transparent for our clients, enabling us to serve them better.
"It will also enable us to reduce costs significantly as our operations become simpler with more common systems and processes, increasing our use of shared service centers, rationalising office space and reviewing property ownership globally."
Yamamoto, releasing September quarter results, says client confidence steadily returned through the three months with a pickup in new pitch activity in both Japan and internationally.
"We have won a number of new clients and significantly expanded many of our existing relationships, including KraftHeinz, American Express and Heineken," he says.
"We are beginning to see the benefit from combining our talent, process, and technology in integrated solutions for our clients.
"However, we remain cautious on the shortterm outlook, given the uncertainty surrounding the impact from COVID-19 as restrictions have now been increasing in many countries across the globe."
Other moves by the company, which employs 66,000, include an early retirement program in pursuit of a leaner organisation with better cost efficiency.
Dentsu numbers for the nine months to September:
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