Whisky producer Diageo to axe 80 Scottish jobs

The cuts, mainly of managerial positions, will be made across the company’s 50 sites in Scotland and are being made “to boost competitiveness”. They follow a procurement review of its Scottish manufacturing operations. A company statement said: “To ensure the business in Scotland remains competitive the review identified opportunities to simplify processes and organisation at local levels, which will result in a proposed reduction of around 80 roles across Diageo’s 50 sites in Scotland. “The reduction will primarily be in management roles and will be spread across a number of sites. This change will be managed through a phased process in consultation with employees and implemented over the next financial year until June 2014. Diageo will seek wherever possible to minimise the impact of any change.” The world’s biggest drinks company said its Scottish manufacturing business is “well placed to meet the challenges of an increasingly competitive global environment” but that its refinement would build further competitiveness. Scotland will be part of a newly-created International Supply Centre which brings together management of Diageo’s beer, wine and spirits production in Europe under a single structure, Diageo said. The centre will replace the Diageo Europe Supply organisation and will continue to be headquartered in Edinburgh. Diageo’s £1 billion investment programme to increase Scotch whisky production in response to growing global demand will continue as planned, the company said. Whisky accounts for about a third of Diageo’s sales, in brands such as Johnnie Walker, Bell’s and JAB. The company reported a 5% rise in sales in January as revenue at the group, which also owns Smirnoff vodka and Guinness, hit £6 billion in the six months to December 30. Diageo employs around 25,000 people worldwide.