Big news! Diageo announces operational review

on 25/05/11 at 9:46 am

Industry

Diageo, the world’s biggest alcohol company, has announced a major review of its operating model and changes to its executive committee in a move that looks destined to lead to job cuts across the company.

Paul Walsh, chief executive, said the changes are designed to “focus on growth and create a more cost-effective organisation.”

As a result of the changes to the company’s structure, chief customer officer Ron Anderson and Stuart Fletcher, president of Diageo International, have announced their resignation from the company.

The full statement from Walsh said: “The regional variation in the pace of economic growth has created significant change and new opportunities for Diageo as a global business.

“In order to capture these opportunities Diageo has begun a review of our operating model across the business to ensure that all our resources are deployed closer to the market and in those areas where the potential for growth is greatest.

“This review will encompass changes to our regional structure and to the way we organize our central functions. Yesterday we announced an employee consultation process on significant changes which are proposed to our organisation in Europe.

“Today we have announced a change to the current configuration of our International region and from 1 July 2011 we will have two autonomous regions; Diageo Latin America and Caribbean and Diageo Africa.

{Full story}

Enhanced by Zemanta