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Is the Diageo UK MD getting ready to leave?

Rumours are continuing to circulate over whether the head of Diageo’s operations in the UK is preparing to step down after less than a year in the role. 

Diageo CEO, Sir Dave Lewis, has moved swiftly to reset strategy after mixed half-year results and sliding sales for the Guinness owner. The dividend cut aims to boost financial flexibility as Diageo faces pressure in North America and China.

Diageo has revealed that CEO Dave Lewis will cut jobs at the British drinks firm, and also confirmed plans for the departure of its UK managing director.

The drinks giant recruited more than 100 staff members back in the spring in a move that is said to have more than doubled the business’s independent on-trade and convenience team in the UK.

Restructure

Despite these forward steps, managing director UK Barry O’Sullivan is anticipated to 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, a firm where Lewis himself also worked for 28 years. Woodward is set to join Diageo in September.

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A Diageo spokesperson confirmed: “We’re thrilled that Marc will be joining us in September. 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.”

Sales fell

After the company’s organic sales fell by 2.8% in the first half of the 2026 fiscal year, Lewis revealed that Diageo is “significantly underrepresented” within the lower end of the market and hinted that was where he saw there could be opportunities for growth.

According to a report from the Financial Times this week, Lewis has “instructed his top executives to cut headcount and other costs in their departments”. The report also suggested that an internal announcement about the scale of the losses will be made next week.

Responding to questions, a Diageo spokesperson released a statement that said: “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 a Capital Markets Day on 6 August.”

Diageo currently employs more than 29,000 people worldwide.

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