Sir Dave Lewis, the chief executive of Diageo PLC (LON:DGE), is preparing to undertake a sweeping reorganisation of the company's senior leadership, according to people familiar with the matter. The proposed changes would affect several members of Diageo's 14-person executive committee as Lewis seeks to address cultural issues within the business.
Those close to the situation say the planned reshuffle is part of a wider programme to reshape the London-based consumer goods company, which owns brands including Johnnie Walker whisky, Captain Morgan rum and Guinness beer. One source described the intended effort as "wholesale change" aimed at correcting what the source characterised as complacency and overly convoluted decision-making across the organisation.
Reports indicate Lewis could go beyond swapping senior executives and opt to eliminate entire layers of management in order to streamline operations and accelerate decision-making. A second person familiar with Lewis's approach told reporters that structural removals at multiple levels within the organisation are likely under consideration.
Diageo employs more than 29,000 people and is listed on the FTSE 100. While some investors expect the new chief executive to move quickly on his turnaround plan, the company is not anticipated to unveil personnel changes when it releases interim results next week. Nevertheless, market participants are watching for rapid implementation once decisions are finalised.
The unfolding management review signals a focused attempt by Lewis to confront internal cultural dynamics that advisers say have hampered efficiency. The scope of the potential overhaul - from executive committee replacements to the possible removal of managerial layers - highlights the scale of the leadership reset being contemplated.
Contextual note: The information above is drawn from individuals reported to be familiar with the discussions and reflects the current, publicly reported state of management plans at Diageo.