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Up to 400 jobs to be cut at Diageo headquarters

The multi-national company is seeking a change to the laws and rules which govern how whisky is produced
The multi-national company is seeking a change to the laws and rules which govern how whisky is produced

Global alcoholic drinks giant Diageo is understood to be preparing to cut up to 400 jobs in the UK.

The cuts are expected to be made at the company’s London headquarters as part of a three-year productivity programme, announced in 2015 with the aim of saving up to £500 million.

Diageo, which produces whiskies including world best-seller Johnnie Walker, Bells, Buchanan’s and J&B as well as Guinness and Smirnoff vodka, has 4,500 employees in the UK, with around 1,500 of them based at its head office.

The company has reportedly frozen recruitment at its London base since the productivity programme was announced.

Yesterday, a Diageo spokesman said: “We announced last year that we would deliver a productivity programme over the three years ending fiscal 2019.

“This covers all aspects of how we run our business, as we continue to become more efficient and invest behind growth.

“As you would expect our employees will be the first to hear about any proposed changes to our structure.”

In July Diageo Great Britain posted its third year of continuous growth, with net sales up 4%.  Sales of Smirnoff and Guinness rose just 1% during the year.

Globally the company recorded a net profit of £2.24 billion on full-year sales totalling £10.49 billion.

Diageo owns a number of well-known Scottish distilleries, including Talisker, Dalwhinnie, Blair Athol and Cardhu.

The company employs 33,000 people worldwide and the productivity programme covers its global operations.