Diageo CEO unveils plan to double Guinness output while slashing workforce
Diageo chief executive Dave Lewis announced a restructuring that will cut a large share of its 30,000-person staff and invest $1 billion to double Guinness production by 2029.
New Diageo chief executive Dave Lewis presented a comprehensive turnaround that couples a sizable workforce reduction with a major expansion of the Guinness brand. He described “massive” role duplication and warned that the company expects $514 million in employee-severance costs as part of a $1.2 billion restructuring designed to deliver $1 billion of yearly savings within two years. A separate $1 billion outlay will fund a plan to double Guinness brewing capacity by 2029, with a particular emphasis on the North American market.
The announcement follows a recent decline in sales and a 26% fall in annual pre-tax profit, although operating profit slightly exceeded forecasts. Investors reacted positively, pushing Diageo shares up more than 6% in afternoon trading. Lewis also rejected speculation about selling Guinness and said the firm will broaden its portfolio to include mid-market brands and ready-to-drink offerings.
Why it matters
The plan reshapes a major drinks maker, affecting thousands of jobs and the future of a globally iconic beer brand.
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