Fears for jobs as Diageo unveils major shake-up

Diageo's 20,000-strong workforce was on alert today after the Guinness maker said it was consulting on job losses amid massive restructuring plans.

Some of the thousands of staff working at Diageo in the UK and Ireland, including at its headquarters in Park Royal, were nervous about job security after chief executive Paul Walsh said: "The regional variation in the pace of economic growth has created significant change and new opportunities for Diageo as a global business."

Walsh, whose salary rocketed 72% to over £6 million last year, added: "To capture these opportunities, Diageo has begun a review of our business to ensure resources are deployed closer to the market and in those areas where the potential for growth is greatest."

Stuart Fletcher, head of Diageo International, and Ron Anderson, chief customer officer, quit on news of the restructuring, but will remain at the firm until the middle of next year. The drinks maker, whose brands also include Johnnie Walker and Smirnoff, is to launch two new divisions, Diageo Latin America and Caribbean and Diageo Africa. Fletcher added: "Over the next few months we will consult with our employees on further changes to our operating model."

Strong growth in Asia, Latin America and Africa helped Diageo beat City first-quarter sales forecasts but Europe was moribund.