Diageo ‘to cut jobs’ in productivity drive

The world’s largest spirits producer Diageo is reviewing staffing levels at its London head office as it moves to implement a “productivity programme”.

Diageo is reviewing its staffing levels as part of its ‘productivity programme’

In addition to job cuts at its Park Royal headquarters, the Johnnie Walker Scotch whisky and Smirnoff vodka maker is also considering reducing its global operations workforce, according to City AM.

Diageo announced last year it was looking to make £500 million in savings over a three-year period, as part of its “productivity programme”.

When approached by The Spirits Business a spokesperson said: “We announced last year that we would deliver a productivity programme over the three years ending fiscal 2019. This covers all aspects of how we run our business, as we continue to become more efficient and invest behind growth.

“As you would expect our employees will be the first to hear about any proposed changes to our structure.”

In the 12 months to 30 June 2016, the drinks giant’s net sales slipped 3% on a reported basis to £10.4 billion, while net profit fell 6% to £2.24bn.