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6 clusters · 27 sources · 43 days · First seen · Last updated

Diageo cost-cutting and restructuring

Overview

In early August 2026, Diageo announced a multi-year cost programme aimed at restoring organic revenue growth to a low-single-digit rate by fiscal 2028/29 after a 2% sales decline and a $19.6 billion revenue drop. The plan was paired with the appointment of former Procter & Gamble executive Sujay Wasan as President of the Asia-Pacific business. The following day, the company detailed a $1 billion cost-saving programme over three years as part of a broader $1.2 billion restructuring. Savings are to come from an operating-framework redesign ($850 million) and supply-chain initiatives ($150 million), while restructuring costs include $1.2 billion in charges and $1.5 billion in impairment linked to hyperinflation in Turkey and brand write-downs. Operating profit fell 27.2% and net sales slipped 3%, with weakness in North America and Asia-Pacific driving the decline. Adjusted operating profit rose 2% to $5.7 billion. The plan may involve staff cuts of 20-30% and is intended to fund selective innovation, such as doubling Guinness capacity by 2029. By late August, the implementation of this turnaround strategy led by CEO Sir Dave Lewis resulted in initial job losses, including nearly 1,000 positions in Africa. To align leadership with shareholder interests, the board proposed a long-term incentive scheme for Lewis that could allow him to claim up to £15 million by 2029, contingent upon a 50% increase in the company’s share price. Despite near-term headwinds from slumping volumes, Diageo shares saw a recovery in late August, climbing 12.5% over a month. This follows a five-year period where the stock lost more than half its value. However, financial disclosures for fiscal 2026 showed organic net sales declined 2%, impacted by weakness in the US spirits market and Chinese demand. Consequently, the company recommended a dividend cut of approximately 52%, from 103.48 cents to 50.00 cents per share.

Entities

Diageo · Sir Dave Lewis · Dave Lewis · Diageo Plc · FTSE 100

Timeline

  1. 16 days ago

    [BUSINESS] 3 sources
    Diageo receives mixed analyst ratings and price targets

    Analysts provide mixed outlooks for Diageo, with Deutsche Bank lowering its price target to GBX 1,734 while Jefferies maintains a “buy” rating with a target of GBX 2,200.

  2. 27 days ago

    [BUSINESS] 2 sources
    Diageo shares recover following cost-cutting measures

    Diageo shares have rebounded 31% from a 15-year low following cost-cutting measures by CEO Sir Dave Lewis, despite ongoing sector-wide pressure and market volatility.

  3. about 1 month ago

    [BUSINESS] 3 sources
    Diageo shares recover as Sir Dave Lewis begins tenure

    Diageo shares have rebounded 12.5% in the last month following a long-term decline. The spirits group faces challenges including falling operating profits and a significant dividend cut for fiscal 2026.

  4. about 1 month ago

    [BUSINESS] 5 sources
    Diageo implements major turnaround and cost-cutting strategy

    Diageo is undergoing a major turnaround under CEO Dave Lewis, featuring a $1 billion cost-cutting plan and a performance-linked incentive scheme to restore growth and margins.

  5. about 2 months ago

    [BUSINESS] 13 sources
    Diageo launches $1 bn three‑year cost‑cutting plan

    Diageo unveiled a $1.2 bn restructuring to save $1 bn in three years, cut jobs, and boost profitability after a sales dip; shares rose 6‑7 % on the news.

  6. about 2 months ago

    [BUSINESS] 2 sources
    Diageo unveils cost‑cutting plan and names Sujay Wasan as Asia‑Pacific president

    Diageo announced a cost‑saving programme to restore organic revenue growth by 2028/29 and appointed former P&G executive Sujay Wasan as President of its Asia‑Pacific business.

Sources

ad-hoc-news.de · bottleraiders.com · businesselitesafrica.com · checkout.ie · dailybusinessgroup.co.uk · de.euronews.com · elceo.com · eveningstandard.co.uk · financial-news.co.uk · finanzen.net · finanznachrichten.de · fool.co.uk · grocerygazette.co.uk · hospitalityireland.com · hvg.hu · it-boltwise.de · merca2.es · moodiedavittreport.com · seekingalpha.com · spacemoney.com.br · stiripesurse.ro · stocknews.com · thedeepdive.ca · thefinancialanalyst.net · thegrocer.co.uk · tvnews4u.com · utjecajnije.com

This summary has been updated 4 times: see revision history