Diageo PLC (LSE:DGE) shares rose 1.8% to 1,813 pence after the Financial Times reported that Dave Lewis, the drinks group's recently appointed chief executive, is planning a significant restructuring of the company's leadership team.
Lewis intends to replace several members of Diageo's 14-person executive committee and remove entire layers of management, the newspaper said, citing people familiar with the matter. Diageo declined to comment.
The reported shake-up comes three months after Diageo, the maker of Johnnie Walker whisky and Guinness, appointed Lewis to lead a turnaround at the world's largest spirits company following a prolonged period of weak performance.
Lewis, a former chief executive of supermarket group Tesco who earned the nickname "Drastic Dave" for his cost-cutting approach, faces considerable challenges at Diageo, including the impact of US tariff increases on the company's most important market.
The group has struggled with sluggish consumer demand across key regions in recent years, prompting the board to look outside the company for leadership capable of delivering a rapid operational overhaul.