Diageo CEO Dave Lewis has directed management to cut their teams by 20% to 30%, according to Reuters. Sources indicate that Lewis issued the job reduction directive at a meeting with Diageo's business leaders in Edinburgh, Scotland. The British multinational alcoholic beverages company has been struggling with a macroeconomic environment and changing consumer habits, especially among Gen Zers who prefer non-alcoholic beverages, as well as the proliferation of weight loss medication siphoning off demand towards healthier options. Since the end of the pandemic, a steady drop in alcohol consumption has eroded Diageo's sales and resulted in a share price decline of more than 50%. Shares of Diageo rose 1.7% in premarket trading to $84.98, with a 52-week range of $72.45 to $116.41 and a dividend yield of 3.97% for new buyers.
Diageo PLCCEO orders 20-30% job cuts due to sales slump from changing consumer habits and weight loss drugs, but shares rose 1.7% in premarket.