Debra Crew, Diageo’s chief executive, has resigned from her role after two years, according to a report by The Times.
Nik Jhangiani, the chief financial officer, has been named interim CEO while the company searches for a permanent successor.
The Guinness owner described the departure as a mutual decision and did not provide any additional details.
The change in leadership comes as the parent company of Johnnie Walker and Guinness faces challenges, with the drinks giant focusing on increasing sales and lowering its debt.
This forms part of Diageo’s broader strategy to appoint a new leader who will drive a turnaround plan following investor concerns over sharply declining shares.
Last year, mounting investor pressure called for changes in Diageo’s leadership as the company’s shares fell to a seven-year low. During Debra Crew’s tenure as CEO, Diageo’s share price dropped by more than 40%.
However, following reports of a potential new CEO appointment, Diageo’s shares rose by 3%.
In February, the drinks manufacturer downgraded its medium-term guidance after operating profits declined by 4.9% to £2.54 billion, while organic operating profits decreased by 1.2% to £33 million.
Additionally, the company cautioned that it could incur a $150 million loss due to increased US tariffs but remains confident in its capacity to manage and offset the financial impact.
In May, the company revealed plans to reduce costs and boost cash flow through its new Accelerate program.
