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Diageo preparing to slash "hundreds" of UK jobs

Published:  19 September, 2016

Drinks giant Diageo is being reportedly preparing to axe up to 400 of jobs in a bid to save money.

The Guinness and Smirnoff producer has begun a review of staffing at its headquarters in Park Royal, northwest London, in order to save £200 million out of a total planned £500 million by 2019.

The cuts are part of a three-year initiative, and reports say that anywhere up to 400 employees could be set to lose their jobs.

There are currently around 1,500 Diageo employees working in London, 4,500 in the UK and 33,000 worldwide.

The axe is not hanging over the UK alone, however, as Diageo is also making plans to make cuts across its global operations.

A Diageo spokesperson said that a productivity programme would be delivered over in the three years to 2019, although employees will be the "first to hear about any proposed changes to our structure".

Diageo has reportedly frozen hiring at its London base since the planned cuts were announced last year.

In July, Diageo Great Britain posted its third year of continuous growth with net sales up 4%.

Baileys, one of the company's six 'global giants' saw an accelerated performance with net sales up 11%.

However, two of its biggest brands, Smirnoff and Guinness, failed to make as big an impact, with both brands' net sales climbing just 1%.

Over the past few years, things have been troublesome in its most profitable region, America, although globally, Diageo has bounced back with total net profit £2.24 billion on full-year sales totalling £10.49 billion.