Dentsu Aegis Network is to merge a number of its Asia Pacific (APAC) and South East Asia (SEA) teams, in an effort to cut costs.
In an email obtained by Mumbrella, Dentsu Aegis Network APAC chief executive Nick Waters said that the group had identified potential cost-savings in departments such as finance, IT, HT and communications.
Waters said that the group, formed in 2014, must be run “as efficiently as possible” and, therefore, it is his responsibility to “eliminate duplicate costs”.
This has resulted in the merging of APAC and SEA functions, and the departure of a number of senior staff, including regional chief financial officer Theo Lau, regional talent management director Ujjwal Sarao and regional marketing and corporate communications manager Lavinia Rajaram.
According to Mumbrella, the email from Waters stated:
“As you know Dentsu Aegis Network was created effective January 1st 2014. The strategic objectives for the merger were for accelerated revenue growth based on the combination of assets managed through the unique operating model.
“These objectives are widely viewed to have been achieved so far on a global basis, and here in the Asia Pacific region.
“The success of the merger was not to be defined by cost savings so whilst we have looked to find efficiencies from combining the businesses this has not been a primary objective. However, it is the responsibility of management to run the business as efficiently as possible and eliminate duplicate costs in order to invest in productive areas of the business.
“With this in mind we have identified the opportunity to create a more efficient and effective working structure by consolidating the Asia Pacific and SEA functions – Finance, Legal, IT and Communications.
“As a result Theo Lau, Ujjwal Saerao, Thijs Plug, and Lavinia Rajaram will be leaving the business. I take this opportunity to thank them for their contribution to the group.”