The Dentsu Group, a major advertising company, has announced that it will have a final deficit of 23.7 billion yen in its one-year financial results up to this month.
The deficit has been for the second consecutive year, and we have decided to significantly reduce the number of employees, mainly overseas.
The Dentsu Group has announced its earnings outlook for the year ending December, which had been undecided.
According to this, the revenue based on international accounting standards is 928.7 billion yen, a decrease of about 11% from the previous year, and the final loss is expected to be 23.7 billion yen.
This is because companies are squeezing advertising costs around the world due to the spread of the new coronavirus infection, and the overseas business continues to be sluggish, resulting in a reduction of about 6000 people, which is more than 12% of the number of employees overseas. The main factor is to record 56 billion yen as the cost.
In Japan, we have already solicited early retirement and have introduced a system to consign 230 retirees as sole proprietors.
The Dentsu Group posted a final deficit of over 80 billion yen last year due to sluggish overseas business, but it is expected to be a large deficit for the second consecutive year due to the impact of the new coronavirus.