What specific staff reduction targets has Diageo’s new CEO Dave Lewis mandated across teams, and where were these directives announced?

Dave Lewis has mandated staff cuts of 20% to 30% across some Diageo teams, including a group of about 100 senior leaders and one large regional business unit cutting 25% to 30% of its staff; he also ordered overhead reductions of up to 40% in some markets and 50% in a centralised global unit. These directives were delivered at a meeting with Diageo’s business leaders in Edinburgh during the group’s fiscal fourth quarter, which ended in June.

Why did Diageo appoint Dave Lewis as CEO, and what broader business challenges is the company facing under his leadership?

Lewis was appointed after years of setbacks that hurt Diageo’s share price and investor confidence, taking over a company struggling with weaker spirits demand—especially in the U.S., where consumers have curtailed alcohol spending due to rising costs of living—and whose share price has more than halved over the past five years.