Diageo looks to cut 22 distillery jobs

Lagavulin owner Diageo has started consultations to cut 22 jobs across its Scotch malt whisky distilleries.

The move aims to create a “more flexible operating model” for the group, whose Scotch malt whisky brands include Talisker, Mortlach and Oban.

A Diageo spokesperson said: “We continually review all aspects of our operations to ensure we are set up in the most agile and efficient way.

“We have been sharing a new, more flexible operating model proposal with our distillery employees, which could mean the removal of 22 roles from the current 550 roles across our malt distilling footprint.

“As a result, we have now commenced a consultation process with our people and their representatives.”

In August, Diageo reported an 8.4% organic net sales decline for the year ending 30 June 2020. The company’s Scotch whisky portfolio saw organic net sales drop 17%, with blended Scotch brand Johnnie Walker reporting a 22% decline.

That same month, however, Diageo agreed to buy Davos Brands, which co-owns Aviation American Gin with actor Ryan Reynolds, in a deal worth up to US$610 million.