Diageo to nearly double Guinness production and cut jobs in turnaround plan
Guardian AU Business
β’Thu, 06 Aug 2026 16:12:51 GMT
π° What Happened
New Diageo CEO Dave Lewis unveiled a strategic overhaul that will nearly double Guinness production while cutting a 'significant' proportion of its 30,000-strong workforce. Shares rose Thursday after the company reported a sales decline but slightly better-than-expected operating profit, and Diageo told investors it expects $514m (Β£382m) in severance-related charges. Lewis declined to give a specific headcount-reduction figure but cited 'massive' duplication in roles.
π The Backstory
Lewis, the former Tesco boss nicknamed 'Drastic Dave', was parachuted in last November to revive the UK drinks giant after a period of flagging performance. Some City pundits had speculated he might go further and sell Guinness to raise up to Β£8bn, but instead he chose to double down on the iconic stout brand while trimming costs elsewhere.
π― Why It Matters
The plan marks one of the biggest reorientations of a major global spirits company in years, betting that Guinness's surging global popularity justifies near-doubling production. Job cuts across a 30,000-person workforce will be politically and socially sensitive in the UK and Ireland, and the outcome will be a major test of Lewis's 'Drastic Dave' strategy.
New Diageo CEO Dave Lewis unveiled a strategic overhaul that will nearly double Guinness production while cutting a 'significant' proportion of its 30,000-strong workforce. Shares rose Thursday after the company reported a sales decline but slightly better-than-expected operating profit, and Diageo told investors it expects $514m (Β£382m) in severance-related charges. Lewis declined to give a specific headcount-reduction figure but cited 'massive' duplication in roles.
Lewis, the former Tesco boss nicknamed 'Drastic Dave', was parachuted in last November to revive the UK drinks giant after a period of flagging performance. Some City pundits had speculated he might go further and sell Guinness to raise up to Β£8bn, but instead he chose to double down on the iconic stout brand while trimming costs elsewhere.
The plan marks one of the biggest reorientations of a major global spirits company in years, betting that Guinness's surging global popularity justifies near-doubling production. Job cuts across a 30,000-person workforce will be politically and socially sensitive in the UK and Ireland, and the outcome will be a major test of Lewis's 'Drastic Dave' strategy.