Diageo Chief Said Planning Staff Cuts

Diageo's new CEO, Dave Lewis, has given his executive committee their orders: cut jobs, the Financial Times said, citing two sources.

But Lewis, a turnaround veteran, hasn't given them a specific number of roles to eliminate. Rather, he's given them cost-reduction targets. The cuts are expected to fall hardest on "non-revenue -generating" teams.

The scale of the job cuts will be announced next week, two of the sources told the FT. One added the atmosphere inside Diageo's London headquarters resembles a funeral home.

Lewis has previously said Diageo needs to invest more in mass-market brands to boost growth. This is a change from its previous emphasis on "premiumization." In May, he announced a push into ready-to-drink canned cocktails, to provide more affordable options to younger drinkers.