Diageo has declined to provide concrete details on claims today that a reduction in its regional management structure is on the horizon.
Citing unnamed “people familiar with the matter”, Bloomberg reported earlier today (29 April) that CEO Dave Lewis (above) “is planning to streamline the British distiller’s regional management teams as part of his turnaround plan”. Lewis, who started with the group at the start of January, led a “town hall meeting” earlier this week to provide details internally, the news article claimed.
The move “will give greater power to managing directors who should hold more decision-making capabilities for their markets”, Bloomberg said, based on information from attendees of the meeting.
When contacted by Global Drinks Intel, a company spokesperson said: “As the turnaround progresses, we continue to communicate openly with all our Diageo colleagues.
“We committed to update all stakeholders on our progress during calendar Q3 (July to September) and this remains our timeline.”
Bloomberg‘s report is the second to intimate consolidation at the higher management levels: February saw the Financial Times say Lewis could look to “strip out entire layers of Diageo’s management”. Again, the company chose not to elaborate.
The only subsequent senior executive change that has been confirmed by the group came at the end of March, when Global Drinks Intel revealed exclusively that North America CEO Sally Grimes was leaving the business with immediate effect. Grimes was replaced by John O’Keefe, who at the time was CEO for Asia Pacific, Global Travel & India.
