Diageo Announces CEO Change as Company Pursues Cost-Cutting and Asset Sales Plan

Diageo CEO Debra Crew has stepped down immediately as part of a major leadership shift. This change follows two challenging years for the global spirits giant. The company, known for Johnnie Walker and Guinness, is battling falling sales and growing debt.

This move comes after two turbulent years for Diageo. Since taking over in June 2023, Crew struggled with weakening global demand and internal challenges. Now, CFO Nik Jhangiani steps in as interim CEO. He is widely respected and considered a strong candidate for the permanent role.

Importantly, Diageo is pushing forward with a $500 million cost-cutting strategy. It also plans substantial asset sales by 2028 to improve cash flow and reduce debt. The company has reaffirmed its fiscal 2025 and 2026 forecasts, showing confidence in its turnaround roadmap.

Sales dropped sharply, especially in Latin America, where inventory pile-ups last year triggered a profit warning. This severely damaged investor trust. Moreover, Crew’s tenure saw shares fall nearly 44%, despite Diageo performing better than several peers in the post-pandemic slump.

The broader wine and spirits sector, which boomed during COVID-19 lockdowns, is now seeing softened demand. Higher inflation and interest rates continue to curb consumer spending.

Crew’s exit also reflects a wider trend. Many consumer goods giants are undergoing leadership changes due to evolving markets and geopolitical risks. Nestlé, Unilever, and Kenvue have all reshuffled top roles in recent months.

Previously, Crew served as Diageo’s chief operating officer and was one of the few women to head a UK blue-chip firm. Her departure comes just months after John Manzoni became board chairman. Analysts now believe that fresh leadership could reignite growth, but challenges remain steep.

Nik Jhangiani, who joined as CFO in September 2023, brings deep industry experience. Experts say he has long been viewed as CEO material. His financial background will be vital during this critical transition.

Church House fund manager Fred Mahon said Crew faced a difficult environment and hopes new leadership can drive change.

Although Crew and Jhangiani have not commented publicly, Diageo now moves ahead with interim leadership. The company aims to restore investor confidence and return to sustained growth.