Dave Lewis announces major job cuts at Diageo
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Dave Lewis announces major job cuts at Diageo

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(Update: )
Montana legislator
alcoholic beverages company
  • Dave Lewis, Diageo's new CEO, plans significant job cuts to improve the company's performance.
  • Reports suggest some teams may face reductions of up to 50%, but the total number of jobs affected is unclear.
  • Diageo anticipates a sales decline of 2 to 3 percent this year, attributed to weak consumer demand in the U.S.
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Dave Lewis, the new CEO of Diageo, has reportedly initiated plans for significant job cuts as part of a strategy to revitalize the struggling drinks manufacturer. Since taking over in January, Lewis has been focused on reversing the company's fortunes, which include well-known brands such as Guinness and Johnnie Walker. Reports indicate that staff in Edinburgh have been informed of potential considerable reductions, with some teams facing cuts of up to 50%. However, the exact number of jobs affected remains unclear, and independent confirmation of these plans is limited. Analysts suggest that the cost-cutting measures may be more extensive and rapid than previously anticipated, as Diageo faces a projected sales decline of 2 to 3 percent this year due to weak consumer demand in the U.S. Additionally, Diageo's chairman is reportedly seeking to enhance the board's expertise in the drinks industry, as only one of the current board members has significant experience in the spirits sector. The company aims to redesign its operational framework to achieve sustainable returns for shareholders, with further details expected to be shared with investors at a capital markets day scheduled for August 6.