Diageo launches $1 bn three‑year cost‑cutting plan

Global drinks group Diageo announced a restructuring programme costing about $1.2 bn and aimed at delivering $1 bn of savings over the next three years. Chief executive Dave Lewis said the plan will reshape the operating framework ($850 m) and supply‑chain processes ($150 m) and will involve significant job reductions, with reports of 20‑30% of roles under review. The move follows a mixed fiscal year in which net sales fell 3 % to $19.6 bn and operating profit dropped 27 % after large restructuring and impairment charges, although adjusted operating profit rose 2 % to $5.7 bn. Weakness in North America, where sales fell 8.4 %, drove much of the decline, while Europe, Latin America and Africa posted growth. Investors reacted positively, with Diageo shares rising 6‑7 % after the announcement. The plan also includes a strategy to double Guinness capacity by 2029 and to expand ready‑to‑drink cocktail offerings.