skip to main content

100 jobs to go at Diageo Ireland

Diageo cuts - Hopes lay-offs will be voluntary
Diageo cuts - Hopes lay-offs will be voluntary

Drinks group Diageo Ireland, which owns Guinness, has announced plans to cut 107 jobs.

In a statement, the company said the move was part of a global restructuring programme aimed at cutting costs in the context of the global economic downturn.

The plan - which will cut more than 5% of the company's Irish workforce of 2,000 - will take effect over the next three months across a number of areas including support functions, sales and marketing.

Diageo Ireland says it hopes that as many of the redundancies as possible will be voluntary.

Diageo Ireland's chairman Brian Duffy said the decision to cut jobs was extremely hard - but was necessary to maintain a sustainable and competitive business in Ireland. He said the company appreciated the significant impact the decision would have on employees and their families.

Earlier this year, Diageo said it was reviewing its plan to invest €650m in a new brewing centre as a result of the current economic downturn. Diageo Ireland said last year that it was planning to build a new brewery on a 73-acre site in Leixlip, Co Kildare, as well as renovate St James's Gate in Dublin.

The Guinness staff union said the move was a massive shock for employees and it disputed the need for the cuts. General Secretary Sean Mackle said Diageo was a very profitable company which had made €200m last year alone, and over €1 billion in the last four years.

Redundancy terms are not yet known, but talks on the issue will start at the Labour Relations Commission on Thursday.