Scotch whisky

Diageo’s ‘de-layering’ scheme has shed 200 jobs in the UK

Diageo has cut around 200 jobs in the UK as part of its cost-cutting exercise.

Job losses have hit the UK head office and some regional offices, and those affected will leave the company by the end of the month.

The announcement comes six months after chief executive Ivan Menezes announced the start of a “de-layering” process to simplify the organisation and deliver £200m of savings by the end of 2017.

A Diageo spokeswoman said the reorganisation was part of a process to “evolve its global footprint”.

“We announced back in January a review of the organisation to support our evolving global footprint. We’ve put in place a structure whereby resource and decision-making is deployed at a local level wherever possible, closer to customers and consumers and enhancing our responsiveness and agility.”

The Grocer understands that finance and marketing capabilities will be re-sited within the local markets, rather than at a global level.

The company is also boosting its focus towards business development in “key growth” markets in China and India, which will be headed up by Gilbert Ghostine, currently president of Asia Pacific, from next month.

Sales in the nine months to 31 March were flat at 0.3%, while volumes fell 2%.