Blog: Diageo job cuts - still waving, not drowning?
Olly Wehring | 7 July 2009
In these grim times, news stories of job losses in our industry are coming round on a weekly basis, at least. But last week's announcement that Diageo is to cut its workforce in Scotland by over 10% is alarming for other reasons.
About two months ago, I was talking to one of my senior sources within Diageo, and took him to task about the company's lack of official announcements when it came to workforce reductions. Over the last few months, news has been trickling out of Diageo HQ regarding job cuts in Africa, Ireland and the UK. Why, I asked my source, was the company not being forward in coming forward on the matter?
“Statements about job cuts suggest a company in trouble,” he said. “We're not in trouble.” A fair point, in February, when the company posted increases in both sales and profits for the first half of its fiscal year.
But now, in July, are things less rosy for the drinks giant? In May, Diageo said that sales were flat on an organic basis for the first nine months of its fiscal year, yet maintained that it was on course for operating profit growth for the full-year.
It will be interesting to see the firm's state of play for its full-year, which ended last week. Announcements of job cuts suggest that all is not well. And if Diageo is struggling, what does that say for the rest of our industry?
Heineken is known for its flashy adverts. Now the brewer has given the star treatment to a new recruitment drive with a glamorous and highly-persuasive ad that, quite frankly, had the staff here at...
Move over iPhone 7 headphones-gate, there is a new Apple product causing a stir. Or a shake. Or just a shot....
I was full of questions yesterday when reading our news story about Bacardi's Martini Smart Cube. An ice cube-shaped device that can provide real-time information about its consumer? How? What? Why? H...
News reaches us today of what has been heralded as the "world's most daring whisky challenge". The Ultimate Ardbeg ARDventurer has been launched this week with an inaugural three-day camping trip....
- Why sports drinks fail to ride the Olympic wave
- Experienced hands hold firm at CCEP - Analysis
- What do US wholesalers think of spirits trends?
- How the craft economy is loosening alcohol laws
- It isn't just men who like beer - Comment
- Diageo Australia's commercial head to step down
- Luxury and e-commerce a "natural fit" - Diageo
- "We're not complacent about Brexit" - Diageo
- Diageo merges US, Canada spirits units
- William Grant upgrades Glenfiddich Cask Collection
- Global gin insights - market forecasts, product innovation and consumer trends
- The Next Seven Big Beverage Markets
- Global rum insights - market forecasts, product innovation and consumer trends
- Global non-Scotch whiskies insights - market forecasts, product innovation and consumer trends
- Global RTD insights - market forecasts, product innovation and consumer trends