The Japanese holding company Dentsu is shedding 11% of its staff across seven key markets, including Australia, as profits fall again.
Australia is among the markets marked for "restructuring". The others are the UK, Brazil, China, France, Germany and Singapore.
The 11% job cut in the seven markets represents 3% of the total headcount of the international business,. The estimated total cost is GBP 179 million ($US238.66 million).
The number of jobs to go in Australia hasn't been announced. The 11% is reported to be around 1,400 jobs total across the seven markets.
Overall, Dentsu has cut its profit forecast for the year to December to $US56.60 million from $US326.8 million.
"Within the international business, there are a small number of large, complex and challenged markets that have reported ongoing underperformance over recent quarters," says Dentsu.
"This has continued into the fourth quarter, resulting in a downward revision to our full year performance expectations.
"In order to future-proof the business, a number of planned strategic initiatives are being introduced in these markets to enable us to deliver sustainable growth in FY2020 and beyond.
"This restructuring will accelerate the implementation of the new business model and deliver improvements and efficiencies for our business and our clients."
The structure of the international business will be simplified into three lines: Creative, CRM and Media.
Last month Henry Tajer, who was appointed the local Australika CEO in january, exited the holding group along with his CFO Reg Davidson.
Tajer was appointed to the role in January this year, succeeding former boss Simon Ryan. Davidson had quietly taken on the CFO position six months ago, after the sudden exit of Anthea Kane.
Dentsu Aegis Network has struggled in 2019 with multiple account losses including Super Retail Group, Virgin Australia, Asahi Beverages, the AFL and The Good Guys.
Dentsu's new forecasts in detail:
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