Diageo, the global spirits producer, has eliminated nearly 2,000 jobs in the fiscal year ending June, as part of a broad restructuring initiative aimed at revitalizing its business. The company's total headcount fell by 6 percent, from 29,860 to 27,938 full-time employees.
The majority of these job reductions, totaling 928, occurred in Africa, a region previously identified as one of Diageo's fastest-growing markets. An additional 405 corporate roles were also eliminated across the company. The Asia Pacific region saw 356 positions cut, while North America experienced a reduction of 129 jobs, areas that have recently impacted sales. Conversely, Europe saw a gain of 104 roles, bolstered by strong demand for Guinness.
This move follows the January appointment of chief executive Sir Dave Lewis, formerly of Tesco, who has outlined a £740 million cost-cutting plan expected to span the next three years. Lewis, nicknamed 'Drastic Dave,' has signaled that significant job cuts are necessary to restore what he describes as the company's "winning culture." He has previously stated that a "country by country" approach had become a "route to failure."
While the exact number of future job cuts remains undisclosed, Lewis is expected to concentrate reductions on core functions such as finance, technology, and human resources, rather than on brand management or marketing teams. The company has indicated a strategy to increase investment in price reductions for its products to attract budget-conscious consumers and to expand its portfolio of high-growth beverages, including Guinness and canned cocktails.
Further reductions are anticipated as the company aims to complete most of its regional market adjustments by September 1, adding to the job losses already incurred by June 30.