Diageo initiates restructuring with job cuts and cost reductions to improve profitability amid declining U.S. alcohol sales.
Diageo’s new CEO, Dave Lewis, is executing deep cost cuts and restructuring measures to bolster profitability as U.S. sales weaken. The moves mirror his prior strategy at Unilever, where aggressive efficiency drives earned him the nickname ‘Drastic Dave.’
The spirits maker has seen its stock decline nearly 60% since 2021, pressured by post-pandemic consumption shifts and macroeconomic challenges. Demand has softened further due to Gen Z’s preference for non-alcoholic options and the impact of weight-loss drugs on alcohol consumption.
Diageo aims to reallocate resources toward higher-growth areas while trimming underperforming units. The restructuring is expected to offset revenue declines and improve margins in the near term.