Dentsu Aegis Network implements cost cuts to weather COVID-19 storm

Dentsu Aegis Network (DAN) is implementing cost saving measures across the company, as a result of COVID-19 business impacts. DAN Singapore's spokesperson told Marketing that this is to ensure business continuity and to safeguard its employees' livelihood worldwide. 

The measures include implementing an immediate hiring freeze, delaying salary reviews in 2020 and temporary salary reductions with the top management team taking the highest percentage cut, the spokesperson said. The spokesperson clarified that as part of the cost saving measures, it implemented non-people measures first before taking measures related to staff.

“Since the coronavirus outbreak, DAN’s primary priority has been to protect our people, preserve and nurture our client relationships and to support the local economies and communities in which we operate," the spokesperson said. She added that the network considers its employees to be its greatest strength and it is doing everything it can to ensure it has a healthy and sustainable business for them and its clients, after the crisis passes. Headquartered in London, DAN has about 42,000 employees worldwide and is present in 145 countries, including Singapore, Malaysia, Indonesia, and Hong Kong. 

The network recently poached DDB's global president and CEO, Wendy Clark, to helm the role of global CEO. Clark, who is synonymous with the DDB brand, is recognised for her modern leadership approach that includes her philosophy "Lift as you climb", translating to taking talent with you as you grow. The appointment comes into effect this September.

DAN joins WPP in taking cost reduction measures. Last month, WPP said it is freezing new hires, reviewing freelance expenditure and stopping discretionary costs including travel, hotels and costs of award shows. WPP added that it will be postponing planned salary increases for 2020. In addition, members of the WPP executive committee, as well as the board, have committed to taking a 20% reduction in their salaries or fees for an initial period of three months. 

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