Diageo Announces Cost‑Reduction Programme and Job Cuts
Diageo plc’s newly appointed chief executive, Dave Lewis, has directed the company’s executive committee to achieve specific cost‑reduction targets as part of a broader restructuring effort. The Financial Times reported that Lewis, who previously delivered aggressive cost cuts at Tesco and Unilever, did not disclose the exact number of jobs to be eliminated. The firm plans to communicate the scale of the job losses to employees internally in the coming week.
Lewis highlighted that weak sales in North America – Diageo’s largest market – constitute the “biggest challenge” for the group. In response, the company has already implemented price reductions on certain tequila brands, notably Casamigos, as an immediate measure to stimulate demand. Additionally, Lewis stated that Diageo has completed work aimed at enhancing its global competitiveness, although no further details were provided.
The announcement signals a focused effort to curb expenses and address under‑performance in a key market, while also preparing the organization for a more competitive landscape worldwide.