Dentsu has axed its Carat and iProspect media agency brands in Australia, merging them all under the holding company.

The move has seen three senior leadership cuts, affecting iProspect’s managing director Marcelle Hoyek and its GM for Victoria Ken Lam, alongside Carat client lead for Woolworths Barbara Messitt.

This change is specific to the Australian market and will be implemented over the coming months.

Rob Harvey, CEO of Dentsu ANZ, said in a press release that the move was “a deliberate structural shift designed to create a stronger, more connected business”.

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“This is a confident, strategic decision, driven by a belief that a simpler, more focused business is a stronger one.

“Uniting our media capability under a single brand creates clearer accountability, greater scale and a more compelling proposition for clients. It’s the right structure for where Dentsu is heading, and the right move for the Australian market.”

Under the new model, Dentsu’s media will operate with a single managing director in each state, all reporting to Chris Ernst, the former Dentsu Queensland MD who was recently appointed chief practice officer, media.

Richard Lehocz has been appointed as managing director – media in Victoria, while the business is recruiting a new managing director, media for NSW, following the departure of Hiranthi Jayaweera to OMD.

All other state leaders remain unchanged.

In a statement, Ernst said the move “shapes the future of our agency and creates growth opportunities for all those who intersect with it, from our people, our partners and our industry.”

Chris Ernst will lead Dentsu’s merged media operation (Mumbrella)

“Under this model, we will move faster, collaborate more effectively and deliver better outcomes in each market,” he added.

“We have remarkable people and capability across the business, and I’m excited to see them thrive under this new direction.”

In a statement to Mumbrella about the leadership redundancies, Ernst added: “The changes we’ve made to our media business have required some difficult decisions, including about some truly outstanding leaders.

“[Marcelle], Ken and [Barbera] are some of the best. I have enormous admiration and respect for the care, expertise and dedication they have all brought to our business and our clients. They will thrive wherever they go next.”

The announcement comes just days after Dentsu Australia posted a painful FY25 result, which saw post-tax losses increase by 20% to $76.9m for the year ended 31 December 2025 and net revenue fell 18% to $196m.

Globally, Dentsu Australia was described as one of the worst-performing markets for the Japan-headquartered holding company in its overall results. 

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