**Diageo CEO Debra Crew Steps Down Amid Stock Decline**
Diageo Plc, renowned for its iconic brands like Guinness and Johnnie Walker whisky, has announced the resignation of Chief Executive Officer Debra Crew after two challenging years at the helm. Crew, who took over as CEO in June 2023, oversaw a tumultuous period during which the company’s stock plummeted by 43% as of Tuesday’s close.
In the wake of Crew’s departure, Diageo has appointed Chief Financial Officer Nik Jhangiani as interim CEO while the search for a permanent replacement is underway. Following the announcement, Diageo’s shares experienced a notable increase, rising by as much as 4.4%, marking the largest gain since April.
Crew’s tenure was marked by significant challenges, including a decline in sales attributed to waning demand in key markets such as China, the United States, Mexico, and Brazil. In February, the company abandoned its long-standing medium-term sales target, citing increased trade tensions following former President Donald Trump’s tariffs on U.S. trading partners.
Currently, Diageo is implementing a turnaround strategy aimed at achieving $500 million in cost savings, a response to the underperformance that has led to a more than 20% drop in its share price over the past year.
Nik Jhangiani, who was appointed CFO in September 2024, has already initiated a comprehensive review of Diageo’s portfolio and announced plans for $500 million in cost reductions over the next three years, targeting areas such as supply chain, advertising, promotions, and operational models. With over three decades of experience, Jhangiani has held senior finance positions across various regions, including the U.S., Europe, India, and Africa. He is recognized for his expertise in capital markets, acquisitions, and strategic transactions.
Jhangiani is a graduate of Rutgers Business School in Newark, New Jersey, and is a certified public accountant in New York. He began his career at Deloitte and has held finance roles at Bristol Myers Squibb and Colgate-Palmolive, where he served as the group financial director for Nigeria.
As Diageo navigates this leadership transition, the focus will be on stabilizing the company and restoring investor confidence.
**FAQ**
*What led to Debra Crew’s resignation as CEO of Diageo?*
Debra Crew stepped down due to a challenging tenure marked by a significant decline in stock value and sales, particularly in key markets, prompting the company to seek new leadership for a turnaround strategy.
