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Diageo looks to cut 22 distillery jobs

Lagavulin owner Diageo has started consultations to cut 22 jobs across its Scotch malt whisky distilleries.

Lagavulin Distillery
Lagavulin is part of the Diageo Scotch whisky portfolio

The move aims to create a “more flexible operating model” for the group, whose Scotch malt whisky brands include Talisker, Mortlach and Oban.

A Diageo spokesperson said: “We continually review all aspects of our operations to ensure we are set up in the most agile and efficient way.

“We have been sharing a new, more flexible operating model proposal with our distillery employees, which could mean the removal of 22 roles from the current 550 roles across our malt distilling footprint.

“As a result, we have now commenced a consultation process with our people and their representatives.”

In August, Diageo reported an 8.4% organic net sales decline for the year ending 30 June 2020. The company’s Scotch whisky portfolio saw organic net sales drop 17%, with blended Scotch brand Johnnie Walker reporting a 22% decline.

That same month, however, Diageo agreed to buy Davos Brands, which co-owns Aviation American Gin with actor Ryan Reynolds, in a deal worth up to US$610 million.

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