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Diageo CEO Looks to Reset with $1bn Cost-Cutting Plan
Lewis is expected to outline pricing changes, disposals and new investment as Diageo seeks to recover after weaker sales and a dividend cut.
- On Thursday, CEO Dave Lewis announced a $1 billion cost-cutting plan over three years to revive Diageo, sending shares up more than 7%.
- Weak sales in North America, Diageo's largest market, drove the downturn, with net sales falling 3% to 19.6 billion dollars over the past year.
- Restructuring efforts will cost around 1.2 billion dollars, with savings derived from operations and supply chain optimization under Lewis's direction.
- The company cut its dividend to 50 cents per share, a move analysts described as expected for an incoming CEO with a mandate to stabilize the business.
- Lewis, nicknamed "Drastic Dave" for his cost-cutting history, forecasts flat annual sales for fiscal 2027 while focusing investment on Guinness and ready-to-drink canned cocktails.
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$1B Savings Drive Announced By World's Largest Spirits Maker
Shares of Diageo, the world's largest spirits maker, climbed more than 7% after the company announced a three-year, $1 billion cost-cutting program aimed at reviving growth and improving shareholder returns, reported by CNBC. The restructuring plan will cost about $1.2 billion and deliver savings through 2027 and 2028, with additional supply chain benefits expected later. CEO Dave Lewis said the company is adopting a leaner and more competitive …
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Total News Sources29
Leaning Left5Leaning Right4Center9Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 28%
C 50%
R 22%
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