Diageo plc announced that its newly appointed chief executive, Sir Dave Lewis, will overhaul the company’s leadership team. The plan replaces several members of the 14‑person executive committee and eliminates entire layers of management, a move that the Financial Times reports will streamline decision‑making and accelerate the execution of Diageo’s turnaround strategy.
The overhaul comes after a period of weak performance. For the fiscal year ended June 30, 2025, Diageo reported net sales of $20.25 billion, down 0.1% year‑over‑year, and pretax profit of $3.54 billion, a 35% decline. Weak demand in the U.S. spirits market, falling Chinese white spirits, and sharp declines in China baijiu have all contributed to the downturn.
Lewis, who earned the nickname “Drastic Dave” for his turnaround work at Tesco, is expected to use the restructuring to cut bureaucracy, speed up decision‑making, and improve operational efficiency. By tightening governance, the company aims to better align its resources with growth opportunities and to restore confidence in its long‑term strategy.
The announcement was well received by investors, with Diageo shares rising 3.8% on the day of the news. The company will report its first‑half fiscal 2026 results on February 25, 2026, and analysts expect the overhaul to influence investor confidence in the near term.
While the restructuring does not immediately alter Diageo’s financial results, it is a key step toward improving governance and operational performance. The changes are expected to shape the company’s ability to execute its turnaround plan and could have a lasting impact on future profitability and market positioning.
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