Key facts
- Diageo CEO Dave Lewis has ordered job cuts and cost reductions.
- The company is undergoing a restructuring to improve competitiveness.
- Cost-reduction targets have been set for the executive committee.
- An announcement on job losses is expected next week.
- Diageo plans to update investors on progress on August 6.
Diageo's new CEO, Dave Lewis, has instructed executives to implement job cuts and reduce other costs as part of a significant restructuring effort for the spirits group. Lewis, known for aggressive cost-cutting measures from his previous roles at Tesco and Unilever, has reportedly set cost-reduction targets for the executive committee rather than dictating specific numbers of roles to eliminate. An internal announcement detailing the scale of the job losses is anticipated next week. Diageo confirmed in February its intention to redesign its operating model to enhance competitiveness and deliver sustainable returns, with further updates planned for a Capital Markets Day on August 6. Lewis has identified weak sales in North America as the company's "biggest challenge" and has begun implementing measures such as price cuts on certain tequila brands.