Diageo may shed 200 jobs
Guinness is conducting an intensive review of its Irish operations and workers expect to be told that job losses are to follow from the study as Diageo strives to trim payroll costs among it 2,300 Irish workforce.
The bulk of the redundancies are expected to come in Dublin where last year Diageo merged its brewing and distilling administrative divisions.
However, the operational review also looked at Guinness sales offices in Cork, Galway and Dundalk and these too may be impacted negatively.
A spokesman for Diageo confirmed that the review has been completed but said staff would be informed before any announcements are made.
The detailed root-and- branch appraisal of Guinness’s non-brewing activities in Ireland is certain to result in job losses. The big question is how many jobs will go. Industry insiders are speculating upto 200 job cuts.
Any job losses are expected to be real cuts as it is not envisaged any of the work conducted by the company in Ireland will be transferred to other Diageo locations around the world.
Earlier this week Diageo disclosed that sales of company products which include Guinness, Smirnoff, Johnny Walker and Bewleys have fallen by 5%.
Diageo appear determined to deliver higher margins from its Irish operations as sales fall and profits remain static. The company has already shed 24 jobs at its highly profitable UDV Baileys Irish Cream facility in Dublin. The company produces 5.7 million 9-litre cases of Bailey’s every year.
A review of brewing operations in 2000 resulted in the near closure of the company’s brewing operations in Dundalk when 290 jobs were lost.
Yesterday, Investment bank UBS cut its share price target on Diageo, to 760p from 800p and kept its rating as buy after a weak trading update, dealers said.
