Diageo to nearly double Guinness production and shed jobs in turnaround plan
Diageo CEO Dave Lewis has announced a major restructuring plan that includes doubling Guinness production while cutting a significant number of jobs to save $1 billion annually. The move aims to improve agility and profitability following a decline in sales, despite the human cost of the workforce reduction.
Why it matters
This reflects a classic corporate turnaround strategy involving aggressive cost-cutting and strategic focus on high-growth assets.
In the months after Lewis’s appointment, some City pundits speculated that he might take the radical step of selling Guinness to raise up to £8bn. In the months after Lewis’s appointment, some City pundits speculated that he might take the radical step of selling Guinness to raise up to £8bn. Diageo Diageo to nearly double Guinness production and cut jobs in turnaround plan New CEO Dave Lewis lifts investors’ spirits by promising strategic overhaul worthy of his nickname ‘Drastic Dave’
Prefer the Guardian on Google Diageo’s new chief executive has unveiled plans to nearly double Guinness production while hacking back a “significant” proportion of its 30,000-strong workforce, in a strategic overhaul worthy of his nickname, “Drastic” Dave Lewis .
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