Diageo announces £200m cost cutting plan
Drinks giant Diageo has announced it will cut costs of £200 million over the next three years in response to slowing demand for its products in emerging markets.
Chief Executive Ivan Menezes said: “Over the next two months we will set out detailed plans to simplify our processes and de-layer our organisation. This will create a more agile, accountable and effective organisation to deliver our performance ambition. I expect this to deliver cost savings of £200 million a year by the end of fiscal 2017.
The firm also recently announced plans for a £30m expansion of its Clynelish Distillery in Sutherland. A bio-energy plant is planned for the site to provide non-fossil fuel energy to power the distillery.
Diageo brands include Johnnie Walker, Smirnoff, Captain Morgan and Guinness.
It has a staff of more than 36,000 with many workers in the UK.
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