Diageo cuts 200 jobs in bid to save £200m
10th June, 2014 by Lauren Eads
Diageo is to axe 200 jobs at its London head office along with some regional posts as part of a bid to cut costs and save £200m by 2017.
The Telegraph reported this morning that the world’s biggest drinks company was poised to first cut roles within its marketing department, based in its London head office, as well as a number of regional roles. Following difficulties in emerging markets, Diageo CEO Ivan Menezes outlined in January his plan to save Diageo £200 million by June 2017 by “de-layering” its business. In a statement released this morning, a Diageo spokesman 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.” The company, which is headquartered in London, is best known for Johnnie Walker and Guinness brands and employs 36,000 people around the world. However the company saw its profits slide in 2014, announcing in April a drop in sales within the Asia pacific region of 19%. It is not yet known how job losses will be weighted between its head office and regional roles.