Wine Business Wine Industry News Media Kit Wine Industry Publications Contact Us Wine Industry Blogs Wine Industry Classifieds Wine Industry Events Wine News Archives Wine People News Vineyard Weather Wine Jobs
March 03, 2009
Diageo Cutting 150 Positions in North America Restructuring

Following a "global review," Diageo today announced it is making changes to its organizational structure to reduce business costs that will result in 150 employees in North America losing their jobs. The changes are effective in mid-April.

In a statement, Diageo said it will further integrate its beer and wine organizations, Diageo-Guinness USA (DGUSA) and Diageo Chateau & Estate Wines (DC&E) into a "total beverage alcohol approach" to cut costs.

Ray Chadwick, President of Diageo Chateau & Estate Wines will be leaving Diageo but will remain a non-executive board member and beginning in June, is to become the chairman of Wine Institute.

Diageo said it would soon announce "next steps" for Jim Young, President of Diageo-Guinness USA.
Sandra LeDrew will run the sales operation of DC&E as President, DC&E Sales; while Pete Carr will run the sales operation of DGUSA as President, DGUSA Sales. They will both report directly to Larry Schwartz, President, Diageo USA and will join the Diageo North America executive team.

"We are centralizing finance, supply, marketing and other functions within the business," Zsoka McDonald, a spokeswoman for the company said.

McDonald said the cuts represent four percent of Diageo's 3,700-person North American work force.

When interim results were disclosed in mid-February, Paul Walsh announced the organizational review. Diageo will be looking the rest of its business and is expected to make similar announcements in other parts of the world. Wash previously announced that the company was looking to take £100 million of costs out of the business globally.

"We expect conditions to get tougher and are preparing for the long term," McDonald said. "We have to improve organizational effectiveness and reduce costs. We had some difficult decisions to make about our people."

Copyright© 1994-2014 by Wine Communications Group. All Rights Reserved. Copyright protection extends to all written material, graphics, backgrounds and layouts. None of this material may be reproduced for any reason without written permission of the Publisher. Wine Business Insider, Wine Business Monthly, Grower & Cellar News and Wine Market News are all trademarks of Wine Communications Group and will be protected to the fullest extent of the law.
 FREE DAILY NEWS EMAIL
FREE Wine Business Daily News delivers the industry's top stories emailed to you from our editorial team.
most popular news postings
 MOST POPULAR DAILY NEWS POSTINGS
News links most frequently
visited by winebusiness.com users
LAST 24 HRSLAST 7 DAYSLAST 30 DAYS