Diageo CEO Dave Lewis ordered management to implement job cuts of up to 30% in certain departments. Lewis previously earned the nickname Drastic Dave for aggressive cost-cutting measures in prior leadership roles.
The spirits maker faces a difficult macroeconomic environment and shifting consumer preferences. Alcohol consumption among younger demographics has declined since the pandemic. These factors eroded sales and triggered a significant decline in the company's share price.
Diageo shares rose in premarket trading following the announcement.