Winebusiness.com - Homepage for the Wine Industry

Diageo Cutting 150 Positions in North America Restructuring


Date: 03/03/09

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."

Subscribe to Daily news Email

FREE Wine Business Daily News delivers the industry's top stories emailed to you from our editorial team.

most popular daily news links

latest used barrels

- used barrels  •  Jul 26, 2014 at 6:26PM PDT
- used barrels  •  Jul 26, 2014 at 6:26PM PDT
- used barrels  •  Jul 25, 2014 at 2:10PM PDT
- used barrels  •  Jul 25, 2014 at 9:27AM PDT
- used barrels  •  Jul 25, 2014 at 8:56AM PDT

latest real estate

- real estate  •  1 hour ago
- real estate  •  Jul 24, 2014 at 12:14PM PDT
- real estate  •  Jul 24, 2014 at 11:58AM PDT
- real estate  •  Jul 24, 2014 at 11:40AM PDT
- real estate  •  Jul 21, 2014 at 10:11AM PDT

latest used equipment

- used equipment  •  Jul 26, 2014 at 1:35PM PDT
- used equipment  •  Jul 26, 2014 at 1:35PM PDT
- used equipment  •  Jul 25, 2014 at 3:38PM PDT
- used equipment  •  Jul 25, 2014 at 3:38PM PDT

latest services & supplies

- services & supplies  •  yesterday at 4:53PM PDT
- services & supplies  •  Jul 25, 2014 at 5:10PM PDT
- services & supplies  •  Jul 24, 2014 at 2:23PM PDT
- services & supplies  •  Jul 24, 2014 at 1:21PM PDT
- services & supplies  •  Jul 24, 2014 at 12:16PM PDT

industry events

Aug 1
CA
Search Events:

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.