Diageo Reorganization Combines Wine & Beer, Layoffs Light In Calif., Move To Save $141 Million Per Year

While Fosters saw separating wine from beer as the best economic move, Diageo North America (NYSE: DEO) has headed the other way, combining Diageo-Guinness USA and Diageo Chateau & Estate Wines.

As part of a global look at restructuring, Diageo will also lay off 150 people in the United States and Canada, about 4 percent of its workforce.

Employees learned about the restructuring on Tuesday from Diageo North America CEO Ivan Meneze.

CALIFORNIA GETS OFF LIGHT

Zsoka McDonald, Senior Director, External Relations for Diageo North America, told Wine Industry Insight that 19 job cuts will be in California. “We don’t have a geographic breakout for California,” McDonald said, “but you can assume they will be focused on the St. Helena area.

The job cuts are effective in mid-April.

Ray Chadwick, president of Diageo Chateau & Estate Wines is expected to leave the company.

Subheads for the rest of the story:

• EMPLOYEE ASSISTANCE AVAILABLE

• SEC 6K FILING SAYS REORGANIZATION EXPECTED TO SAVE $141.24 MILLION ANNUALLY
  

• SHARE PRICE DOWN, GLOBAL FINANCIAL PERFORMANCE UP
  

• WINE, BEER DOWN, SPIRITS UP IN NORTH AMERICA
  

• REORGANIZATION BETTING ON GLOOMIER OUTLOOK
  

• EXTENSIVE WINE PORTFOLIO

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