Diageo to cut regional management by mid-May, eyes 2-3% sales drop
CEO Dave Lewis plans to downsize Diageo’s regional management and boost market MDs’ decision powers, with redundancies by mid-May and a new structure by H2 2026. He cut the annual organic net sales forecast to a 2-3% decline and set a 30-50% dividend payout ratio.
1. Leadership Restructure Plans
CEO Dave Lewis has outlined a plan to streamline Diageo’s regional management, shifting decision-making authority to local managing directors as part of his broader turnaround strategy.
2. Employee Impact and Timeline
Employees at risk of redundancy are to be notified by mid-May, with the reorganized structure slated for implementation in the second half of 2026 to enhance agility.
3. Forecast and Dividend Adjustments
The company lowered its annual organic net sales outlook to a 2-3% decline and revised its dividend payout ratio to a 30-50% range to free up funds for competitiveness.
4. Recent Performance and Strategy Roadmap
In the six months to December, Diageo reported $10.46 billion in net sales (down 4%, or 2.8% organically) and $3.12 billion in operating profit (down 1.2% reported); a new strategic plan is due in Q3 2026.