Diageo GB managing director Barry O’Sullivan is to leave the Guinness owner at the end of the month, The Grocer understands.
O’Sullivan, who was promoted a little over a year ago to lead Diageo’s domestic business, is set to be replaced by Unilever veteran Marc Woodward, a former colleague of Diageo CEO Dave Lewis.
Approached for comment, Diageo confirmed Woodward’s appointment. “We’re thrilled that Marc will be joining us in September,” a spokesperson said. “He is a highly accomplished business leader with over 30 years of experience and brings deep expertise across commercial, marketing, and category leadership, whilst also building strong partnerships with key customers throughout his career.”
A spokesperson for Unilever added: “We thank Marc for his contribution to Unilever and wish him every future success. His successor will be announced in due course.”
It means that Diageo’s heads of GB, North America and Africa have all left or are in the process of leaving the business since Lewis’ arrival in January. The Smirnoff owner’s chief HR officer, Louise Prashad, is also set to depart, The Grocer understands.
Scale of layoffs unclear
Meanwhile, a report by the FT suggested Lewis has instructed executives to slash costs and headcount in “non-revenue-generating” teams as he looks to turn around the struggling spirits giant.
There was currently a “funeral home atmosphere” inside Diageo’s London head office as staff waited to discover the scale of layoffs, the report said, citing people familiar with the matter. Diageo employs around 30,000 people globally.
While at Tesco and Unilever, Lewis was given the nickname ‘Drastic Dave’ thanks to his reputation for cost-cutting, but he has so far provided scant detail on his plans to revive Diageo’s fortunes.
In February, the Johnnie Walker maker slashed its dividend and cut its annual sales and profit forecast, leading shares to slide by almost 13%. Speaking for the first time since his appointment, Lewis hinted at a recalibration from premium spirits towards mass-market brands and RTDs.
“The premium portfolio is a massive asset and we will continue to invest in it,” he said. “But we will also, in addition, explore new portfolio opportunities. That might involve some price repositioning and it might open up new proposition spaces.
“In addition, we need to sharpen our price pack architecture and particularly address the opportunity … in the growth of small packs.”
Diageo declined to provide further detail on restructuring plans, stating further detail would be unveiled at its Capital Markets Day on 6 August.
“In February, we shared our intention to redesign our operating framework, to drive sustainable returns for shareholders by delivering a more competitive Diageo,” a spokesperson said. “We will always prioritise informing our colleagues of any organisational changes first and have committed to update shareholders on our progress at a Capital Markets Day on 6 August.”
Diageo shares are down more than 65% since peaking at £40 in 2022.
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