LONDON (ShareCast) - Beer and spirits group Diageo (LSE: DGE.L - news) is cutting 900 jobs in Scotland as part of a major restructuring
that will result in the closure of a 200-year-old distillery.
The Guinness brewer is also consolidating its packaging operations from three sites to two in a bid to cut cost as consumers cut back on alcoholic beverages in the downturn.
About 700 jobs will go with the closure of the packaging plant at Kilmarnock, while another 150 jobs will be slashed at the Port Dundas distillery. The group stressed that 400 jobs would be created in Fife.
Diageo expects to generate cost savings of £120m in the financial year ending 30 June 2010 and an additional £40m in the year ending 30 June 2012. It expects exceptional charges in respect of restructuring of £200m in the year ended 30 June 2009.
Additional cost savings will accrue from the year ending 30 June 2014 in respect of the restructuring of brewing operations in Ireland.
The firm, whose range also includes J&B and Johnnie Walker whisky, reported a 7% fall in quarterly revenue last month.
Send Article by Email
Send Article by IM
Blog This with Y! 360
Printable View
