Diageo is preparing a fresh round of cost-cutting that will include job losses as chief executive Sir Dave Lewis seeks to reverse a prolonged slump in sales and profits. The company has told executives to meet cost reduction targets by axing roles and stripping out costs, though final numbers have not been determined, and its 30,000 global employees expect an internal announcement next week. A spokesman pointed to February's half-year results statement about redesigning the operating framework and said the company will update shareholders at a capital markets day on August 6. The move echoes Sir Dave's reputation for aggressive cost-cutting, which earned him the nickname 'Drastic Dave' during his tenure at Unilever and later helped revive Tesco. Diageo, whose brands include Smirnoff and Johnnie Walker, has seen its shares lose more than half their value since 2022 and reported a 2.8 percent fall in underlying sales and operating profit in the latest half, with particular weakness in the key US market.
Diageo PLCCost-cutting plan including job losses indicates ongoing financial struggles and need to reverse sales/profit slump.