Dentsu Reports Organic Growth of 5.1% in 2016
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Tokyo-based advertising giant Dentsu Inc. reported organic growth of 5.1% in 2016 and announced more changes to bolster workplace reforms as it tries to cut down on overtime and improve work-life balance at its Japanese operations.
For Dentsu, the last few months of 2016 were marked by difficulties at its operations in Japan, where it was founded 116 years ago and where it still does nearly half of its business. Japanese labor authorities deemed the suicide of a young Dentsu staffer a case of “death by overwork,” spurring the company to limit overtime and eventually leading the CEO to step down. Separately, the company also acknowledged overcharging some clients in Japan and other inappropriate business transactions.
Its earnings report for the 2016 calendar year was mostly upbeat. The company reported organic gross profit growth of 5.1% in 2016, adjusting the numbers to account for acquisitions, divestitures and exchange rates. In Japan specifically, that figure was 4.5%.
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