Diageo Restructures, Cuts Jobs
Last week I mentioned a production slowdown at a Johnnie Walker factory but it looks like the cost cutting at drinks giant Diageo is far more widespread. Diageo has announced that after a "global review" it will institute a reorganization that will cost 150 employees in North America their jobs. The changes will take place next month. To cut costs Diageo will merge its beer and wine organizations, Diageo-Guinness USA (DGUSA) and Diageo Chateau & Estate Wines (DC&E) into a "total beverage alcohol approach" according to an article in Wine Business. The jobs lost make up four percent of Diageo's 3,700-person North American work force.
Diageo is the company behind many of the most popular brands including Guinness, Johnnie Walker, Bailey's Irish Cream and Ciroc vodka (shown with celebrity spokesman Sean Coombs above). Liquor is traditionally one of the safe havens during a recession as people enjoy their liquor as much, if not more, in a down market.