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Holding company Dentsu has revealed that it is planning a restructure to make itself fit for “an evolving market and changing client needs”.
The marcomms giant said in a statement that it had commenced “analysis of potential changes to the group’s holding structure”. This means that power will be redistributed to ensure that talent is more easily pooled across the company. As an international entity, the group will look to “establish a governance structure that is not restricted by the current framework”.
“Due to the global development of business through Dentsu Aegis Network Ltd, which has seen rapid growth, it has become increasingly important for the group to make more unified and cross-sectional decisions within a set of shared values,” the Tokyo-based marcomms giant explained.
“For this reason, it has become essential to establish a governance structure that is not restricted by the current framework of each operating company and enables expeditious decision making from a medium and long-term perspective taking into account the group as a whole.”
In practice, this will see Dentsu Inc split into an operating company and a pure holding company that has shares in the split entity, the network, and the Japanese agencies. It promised more news on the structure to come in the coming months and said it will have the changes in place by 2020.
The changes were announced on the day Dentsu’s chief executive Toshihiro Yamamoto emphasised the importance of transformation to sustain growth past 2021 during the group’s half-year earnings call.