Diageo launches review; executives to leave
Diageo, the global drinks group, has announced plans to restructure its international business to focus on fast growing emerging markets and said that two leading executives would leave.
Paul Walsh, chief executive, said the company had started a review of its operating model, which will encompass changes to the company's regional structure and the organisation of its central functions.
Currently the company's operations are organised across four regions, America, Asia Pacific, Europe and International.
But from 1 July the company's international business will have two autonomous regions, Diageo Latin America and Caribbean and Diageo Africa.
As a result of these changes, the company said that Stuart Fletcher, the president of the soon to be defunct Diageo International, and chief customer officer Ron Anderson will both leave.
It is though both will leave the company when the transition process is completed, which Diageo expects to happen in the middle of 2012.
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.
"Over the next few months we will consult with our employees on further changes to our operating model and I expect to make an announcement at our prelims presentation in August as to the full extent of these changes. The main driver of these changes will be to focus on growth and create a more cost effective organisation. '
Yesterday, the company announced an employee consultation process on significant changes, which are proposed to its organisation in Europe.
The producer of Guinness and many of the world's most popular spirit brands is reportedly considering a large number of redundancies in Ireland as part of this reorganisation.
Reports this morning put the number of proposed redundancies at between 70 and at least 180 across the Republic as it looks to save €8m a year.
The jobs affected are reportedly in support functions and marketing and the company is expected to offer voluntary redundancies.
