DIAGEO TO DOUBLE GUINNESS OUTPUT WHILE CUTTING JOBS

Diageo has announced plans to double Guinness production capacity by 2029 whilst reducing its 30,000-strong workforce as part of a strategic restructuring led by new chief executive Dave Lewis. The drinks company stated it expects to incur $514m in severance charges related to employee reductions, though Lewis declined to specify the exact number of job losses. Diageo's share price rose following the announcement on Thursday. Lewis said the restructuring would deliver $1bn in annual savings over two years, requiring upfront costs of $1.2bn.

Lewis, appointed chief executive in November, identified what he described as "massive" duplication in roles within the company. The overhaul aims to make Diageo more agile whilst capitalising on global demand for Guinness, particularly in North America. A $1bn investment in the Guinness brand is intended to prevent future supply shortages, including those reported in the UK during recent festive periods. The company has rejected speculation that it might sell Guinness, with Lewis stating the brand's future was "very bright".

Diageo reported a decline in sales but slightly better-than-expected operating profit in its results announcement. Lewis said no one within the company had disputed the necessity of the restructuring plan. The company is not actively seeking to sell underperforming brands, according to Lewis, who has built a reputation in the City for cost-cutting measures that earned him the nickname "Drastic Dave".