Credit: Karl Abuid via Unsplash
Takeshi Sano, the long time head of dentsu’s profitable domestic Japan business and now global CEO, has made fast changes to the management structure of the global advertising group.
Dentsu, recording extraordinary losses and failing to hit forecasts, changed CEOs after writing down the value of its troubled international business by billions of dollars.
After replacing Hiroshi Igarashi as CEO, Sano has been cutting layers of management. He wants to be closer to the action, those executives who speak to clients.
Gone is the global COO role overseeing all regions and and so is the global president controlling practices.
CEOs of each region and the presidents of each practice, those who build direct relationships with clients, will report directly to Sano.
This will enable the management team to operate with “greater unity and make swift decisions,” Sano said.
The release of the company's December quarter results is a low point for the group. Dentsu told shareholders with deep "regret" that they weren’t getting dividends and that cost cutting will continue.
The total amount of goodwill impairment losses recognised in the year to December amounted to 396.1 billion yen (AUD3.6 billion).
The company as a whole recorded 0.5% growth for 2025 and more of the same is forecast for 2026. Dentsu expects organic growth for 2026 to range from 0% to 1%, with the Japan business to grow by 2% to 3%. The international business is projected to be broadly flat.
Sano is moving fast. He has appointed a global chief transformation officer to lead critical global initiatives and “aligning” strategies, operations and technology.
And he now has a global chief corporate affairs officer, overseeing governance, including legal and compliance.
Other new roles include a global chief brand officer and a chief of staff to support the CEO’s office.
The chief brand officer leads the group’s brand vision, positioning and architecture, strengthening a consistent story and reputation.
The new ventures officer drives strategic growth by integrating high-potential capabilities and accelerating new ventures from early exploration through to scalable business growth.
Among the big changes in the management team, Giulio Malegori, global chief operating officer and chairman, dentsu Americas), will become executive senior advisor.
Also gone: Hiroshi Igarashi (director, representative executive officer, president & global CEO); Arinobu Soga (director, representative executive officer, executive vice president, global chief governance officer).
Sano, in a briefing of analysts, gave a quick outline of his plans.
“Our growth is to identify the issues of the client ahead of the client, and to help the client resolve those issues,” he said.
“This is how Japanese business grew, and we have to expand this globally. And as an organisation, we need to be more flat, meaning that each head of the region reports directly to me.
“There is so much that I’d like to say, but I’d like to keep it simple,” he said.
“First is the rebuilding of the business foundation, transparency, simplification, visualisation, to look at underperforming business, to choose whether to exit or shrink or to improve the profitability. We need to execute with speed.
“That is the most important thing, and as for the organisation, there is going to be a chief transformation officer, which is the first position to be in dentsu, and to rebuild the business foundation and re-evaluate the underperforming business.
“Each media, CXM, and creative presidents will be reporting directly to me. So we will remove that layer so that we can identify the issues of the client and enhance our competitiveness in a more swift manner.”
In a written statement, Sano spoke of the “rapid shifts” in dentsu’s business and the competitive environment.
“We continue to thoughtfully evolve our leadership approach and management practices to support the pace of our transformation and strengthen execution, all while maximising our contribution to client growth,” he said.
“Dentsu will continue to sharpen the distinctive value that sets us apart and position ourselves as a true growth partner, supporting clients consistently from strategy through to execution.
“By creating momentum for our clients, partners, people, and society, we will reinforce trust with stakeholders and steadily advance the sustainable enhancement of our corporate value.”
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