VOI world/ desk
Diageo, the world’s largest spirits producer, announced that Debra Crew has stepped down as CEO, effective immediately. The departure was described as mutual, coming after around two years in the role during which the company faced slowing sales, a surprise profit warning, and a nearly 44% drop in share price.
Nik Jhangiani, Diageo’s Indian-origin chief financial officer since September 2024, has been appointed interim CEO. He has promptly initiated a $500 million cost-cutting plan and asset sales to tackle rising debt,, currently at 3.1 times operating profit. His decisive actions, including scaling back ambitious growth targets set under Crew’s leadership, have reportedly boosted investor confidence.
Despite these challenges, Diageo remains financially robust. However, analysts emphasize the need for sustainable growth, better capital management, and navigating external pressures such as U.S. tariffs and evolving consumer preferences. Investors are watching closely as the company begins a global search for a permanent CEO, with Jhangiani believed to be a strong contender.
