‘Drastic Dave’ begins Diageo restructure
Diageo has addressed a report that CEO Dave Lewis will cut jobs at the British drinks firm, and also confirmed the departure of its UK managing director.
A report from the Financial Times yesterday (18 June) said that Lewis has ‘instructed his top executives to cut headcount and other costs in their departments’.
According to the report, an internal announcement about the scale of the losses will be made next week. The current atmosphere at Diageo’s London head office was also likened to a “funeral home” by ‘two people familiar with the matter’.
Diageo currently employs more than 29,000 people worldwide, according to its website.
The firm, which has faced disappointing results in the past few years, appointed Lewis as its CEO last November. The former Tesco boss began work on 1 January 2026.
He succeeded Debra Crew, who left the position last July. Chief financial officer Nik Jhangiani served in the interim.
The Spirits Business reached out to Diageo about potential job cuts. The Johnnie Walker maker responded in a statement: “In February, at our interim results, we shared our intention to redesign our operating framework to drive sustainable returns for shareholders by delivering a more competitive Diageo.
“We will always prioritise informing our colleagues of any organisational changes first and have committed to update shareholders on our progress at its Capital Markets Day on 6 August.”
The date, which coincides with the publication of the company’s full-year 2026 results, is also when Lewis has indicated he will reveal his updated strategy for Diageo.
New UK MD
In Diageo’s home market, Great Britain, the company recruited more than 100 staff members in February. The move is said to have more than doubled its dedicated independent on-trade and convenience team in the market.
However, managing director UK Barry O’Sullivan will leave at the end of the month and will be replaced by Marc Woodward.
Woodward is currently the head of UK and Ireland for British consumer goods giant Unilever, where Lewis also worked for 28 years. He will join Diageo in September.
“We’re thrilled that Marc will be joining us in September,” a Diageo spokesperson shared. “He is a highly accomplished business leader with over 30 years of experience and brings deep expertise across commercial, marketing and category leadership, while also building strong partnerships with key customers throughout his career.”
Meanwhile, Diageo has made more changes to its leadership over the pond. Its former president of Asia Pacific and global travel retail business, John O’Keeffe, has taken over from Sally Grimes as North America president and CEO.
After the company’s organic sales fell by 2.8% in the first half of the 2026 fiscal year, Lewis highlighted an opportunity within the lower end of the market where Diageo is “significantly underrepresented”.
In January, the rumour mill swirled with reports that Diageo is considering the sale of its baijiu business in China.
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