Diageo has announced a cost-cutting plan targeting one billion dollars in savings as part of a turnaround effort under new boss Dave Lewis. The Guinness maker said around 850 million dollars of the savings will come from operations and about 150 million dollars from its supply chain, with restructuring costs expected to reach roughly 1.2 billion dollars. The overhaul follows a 3% decline in net sales to 19.6 billion dollars for the year to June, dragged down by a 9.1% sales drop in North America, while European sales grew 5.7% and Guinness saw double-digit growth in Great Britain. The company did not disclose job impacts, though unions recently warned that 172 distillery workers in Scotland face potential redundancy. Diageo also slashed its proposed dividend by more than half and saw its shares rise 6% after the update.
Diageo PLCDiageo announces cost-cutting plan and slashes dividend, leading to 6% share rise.
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