Diageo CEO Calls for Job Cuts Amid Weak North American Sales
Diageo’s new Chief Executive Officer, Dave Lewis, has urged executives to implement job cuts and reduce costs as the company grapples with disappointing sales in North America, its largest market. The scale of these cuts is expected to be revealed next week, according to reports from Reuters citing the Financial Times.
Lewis, known for his aggressive cost-cutting measures during his tenure at Tesco and Unilever, has set cost reduction targets for Diageo’s executive committee. While the report does not specify the exact number of positions to be eliminated, it highlights the urgency of the restructuring measures within the struggling spirits group.
Since February, Lewis has expressed his intention to redefine the company’s operational model. In a statement to Reuters, Diageo emphasized that the primary goal is to enhance competitiveness and achieve sustainable profits.
The company plans to officially update investors on its progress during a strategy conference scheduled for August 6, where major investors will be in attendance.
Last month, Lewis acknowledged the need to tackle the sales slump in North America, describing it as the company’s “biggest challenge.” Among the measures being considered are price reductions on certain tequila brands, including Casamigos. He indicated that Diageo is taking “fundamental” steps to improve its global competitiveness.
Diageo stands as one of the world’s largest alcoholic beverage producers, boasting a portfolio that includes globally recognized brands such as Johnnie Walker, Smirnoff, Baileys, and Guinness.
