Diageo Raises Cost Cuts, Seeks New CEO After Shakeup

Diageo, the world's largest spirits maker and owner of brands such as Guinness and Johnnie Walker, reported $20.2 billion in organic sales growth for the year, surpassing analysts’ expectations, though overall net sales remained flat due to currency and portfolio shifts. The company raised its cost-savings target to $625 million over three years as it faces a $200 million annual impact from higher-than-expected U.S. tariffs. Interim CEO Nik Jhangiani, who stepped in after Debra Crew's sudden departure, indicated that job cuts are likely as Diageo seeks growth through more efficient investment and supply chain improvements. Sales growth for fiscal 2026 is projected to be similar to 2025, with improvement expected in the second half, as the spirits sector contends with changing consumer habits, economic uncertainty, and competition from alternatives. Diageo is seeking permanent CEO and finance chief appointments by October to provide strategic clarity and restore investor confidence. Analysts highlight the company's strong brand portfolio and aggressive cost-control measures as positive signs for potential recovery.