Diageo plans to save around GBP200m a year by 2017

Diageo plans to save around GBP200m a year by 2017

Diageo has cut around 200 head office and regional roles as part of on-going cost-saving measures, just-drinks understands. 

The group’s CEO Ivan Menezes revealed in January plans to make savings of GBP200m (US$331.4m) per year by the end of 2017. The UK’s Daily Telegraph reported late yesterday (9 June) that marketing roles at its London head office, along with “regional positions” were among those affected. 

A source close to the situation confirmed to just-drinks today there has been “approximately 200 job losses”.  

Menezes said in January the plans would involve “delayering” the business. 

In April, Diageo’s third-quarter sales figures were branded “disappointing” by one analyst as its revenues dipped by 1.3%. Sales in its Asia-Pacific unit slid by 19%, with problems in China continuing to affect the business. 

In an emailed statement today, the company said: “We announced back in January a review of the organisation to support our evolving global footprint. We’ve put in place a structure whereby resource and decision-making is deployed at a local level wherever possible, closer to customers and consumers and enhancing our responsiveness and agility.

"Savings identified will be put back into the growth of our brands and markets, as well as fund future efficiency programmes.”

Last month, the company revealed plans to spend US$115m on building a new distillery in the US state of Kentucky.