Johnnie Walker maker faces axe as 'drastic Dave' orders cost-cutting blitz: Report

Published 18 June 2026 · general

Johnnie Walker maker Diageo's newly appointed chief executive, Dave Lewis, has reportedly instructed senior executives to identify cost-saving measures, including potential reductions in headcount, as he begins a broader restructuring of the global spirits company. According to a report by the Financial Times on Wednesday, Mr Lewis has asked executives across the organisation to cut costs as the company seeks to address operational challenges and improve performance. The report cited people familiar with the matter. Mr Lewis, who earned the nickname "Drastic Dave" during his previous leadership roles at Tesco and Unilever due to his aggressive cost-cutting strategies, has reportedly assigned cost-reduction targets to members of Diageo's executive committee. Rather than specifying a fixed number of jobs to be eliminated, executives have been tasked with meeting savings goals, the report said.

Also Read | I asked ChatGPT how to beat the heat during peak summer hours Internal Announcement Expected Soon The Financial Times report added that details regarding the scale of potential job losses could be communicated internally as early as next week. The reported restructuring effort comes at a critical time for Diageo, one of the world's largest alcoholic beverages companies, whose portfolio includes globally recognised brands such as Johnnie Walker, Reuters reported. Responding to Reuters in an emailed statement, Diageo did not directly comment on the reported job cuts but reiterated plans it had previously outlined earlier this year. "In February, we shared our intention to redesign our operating model to improve competitiveness and deliver sustainable returns," the company said.

Diageo also noted that investors would receive an update on the initiative during its Capital Markets Day scheduled for August 6. Also Read | L’Oréal acquires majority stake in Innovist Focus On Improving Competitiveness The leadership changes and restructuring efforts come as Diageo attempts to address weaker demand in several markets. Last month, Mr Lewis said the company had already begun taking steps to tackle sluggish sales in North America, its largest market. He described the region as Diageo's "biggest challenge" and said the company had introduced measures aimed at improving performance. Among those measures were price reductions on selected tequila brands, including Casamigos, as the company seeks to attract consumers and strengthen sales momentum.