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Diageo Slashes Jobs Under New CEO's Cost-Cutting Plan
18 Aug
Summary
- Diageo's workforce declined by over 6% year-on-year by June.
- Job cuts are part of a $1 billion savings initiative under the new CEO.
- Restructuring efforts are focused on duplicated back-office functions.
As of the end of June, Diageo experienced a workforce reduction exceeding six percent compared to the previous year. This significant decrease, affecting an average of 27,938 employees, aligns with the company's ongoing restructuring efforts initiated by its new CEO, Dave Lewis. The majority of these staff reductions across regional markets are slated for completion by September 1.
These changes are integral to a comprehensive $1 billion savings plan. The initiative involves strategic price adjustments on select brands and aims to bolster Diageo's presence in rapidly expanding market segments, such as Guinness and canned cocktails. Lewis, known for his cost-cutting history, has indicated that the headcount adjustments are concentrated on global back-office functions and areas with substantial duplication.
