Key facts
- Diageo's new CEO Dave Lewis has ordered job cuts and cost reductions.
- Diageo is undergoing a company-wide restructuring.
- An internal announcement on Diageo job losses is expected next week.
- AO World is replacing 200 UK call center roles with South African hires.
- AO World cites rising labor costs and inflationary pressures for the move.
- The move by AO World is expected to save approximately £4 million annually.
- AO World reported a 145% jump in pre-tax profits.
Diageo's newly appointed CEO, Dave Lewis, has directed company executives to implement cost-saving measures, including significant job reductions, as part of a broad restructuring effort. The specifics of the workforce reduction and other cost-cutting initiatives are expected to be communicated internally next week. This strategic shift under Lewis aims to streamline operations and improve financial efficiency across the global beverage alcohol company.
In a separate development within the retail sector, AO World is set to replace up to 200 customer service roles in its United Kingdom call centers with employees based in South Africa. The online electrical goods retailer attributes this decision to escalating labor costs and persistent inflationary pressures within the UK market. The outsourcing is anticipated to generate annual savings of approximately £4 million for the company. This move comes as AO World recently announced a substantial 145% increase in its pre-tax profits, indicating strong overall financial performance despite the specific cost-saving measures being undertaken in its customer service operations.