Diageo Announces Operating Model Review
Published on May 25 2011 11:53 AM in Drinks
Drinks giant Diageo has announced that it will review every aspect of its operating model, in order to focus on growth and create a more cost-effective organisation. The maker of Guinness and Smirnoff Ice said that it was carrying out the review across its entire operations “to ensure that all our resources are deployed closer to the market and in those areas where the potential for growth is greatest”. The UK-based group will implement an employee consultation process on a proposal for significant changes to its organisation. A company spokesperson said job losses were possible.
On July 1st, Diageo plans to break up its International division into Diageo Latin America and Caribbean and Diageo Africa. Stuart Fletcher, president of Diageo International, and Ron Anderson, Diageo’s chief customer officer, will leave the company at the end of the transition process, which is expected to take around seven months.
“Over the next few months we will consult with our employees on further changes to our operating model and I expect to make an announcement at our preliminaries presentation in August as to the full extent of these changes,” said Diageo's CEO Paul Walsh. “The main driver of these changes will be to focus on growth and create a more cost-effective organisation.” (25 May)
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