Diageo, the world’s largest spirits maker known for icons such as Johnnie Walker and Guinness, announced on July 16, 2025, that CEO Debra Crew has stepped down after two challenging years in the top role. Crew’s departure comes by mutual agreement and follows a 44 percent drop in Diageo’s share price during her tenure. Stepping into the breach on an interim basis is CFO Nik Jhangiani, a seasoned finance executive with more than three decades of global experience. His appointment comes as the company pursues a $500 million cost-cutting program and strategic asset sales by 2028 to stabilize performance and reduce debt.
Navigating a Tough Tenure
Debra Crew assumed the CEO position in July 2023 following the sudden passing of long-time leader Ivan Menezes. She inherited a strong legacy but faced an immediate downturn in on-trade consumption as post-pandemic spending patterns shifted. Despite initiatives to expand premium brands and invest in e-commerce, results fell short of expectations. In her first fiscal year, Diageo issued a profit warning citing Latin America overstock and emerging U.S. tariffs on imported spirits. Under Crew’s watch, the company introduced a three-year plan in May 2025 to cut $500 million in costs and sell non-core assets. While these measures aimed to arrest the decline, investors grew impatient as quarterly earnings continued to lag industry peers.
The Case for an Interim Financial Leader
The board’s choice of Nik Jhangiani as interim CEO highlights the priority placed on financial discipline and operational rigor. Jhangiani joined Diageo as CFO in September 2024, after key finance roles at Coca-Cola HBC, Bristol-Myers Squibb, and Deloitte. His mandate includes maintaining the company’s existing guidance for fiscal 2025 and 2026 while accelerating the cost-cutting program. By elevating a finance chief to steer the turnaround, Diageo underscores the importance of restoring investor confidence through transparency and strict budget control. Jhangiani’s background in capital markets, mergers and acquisitions, and strategic transactions positions him to lead asset sales and cost rationalization without derailing growth investments.
Stabilizing Operations and Restoring Confidence
Upon Crew’s departure, Diageo shares gained around 3 percent, signaling positive market reception to the leadership change. Early in his interim role, Jhangiani has committed to detailed operational reviews and monthly performance checkpoints to track cost savings and margin improvements. He plans to work closely with regional presidents to identify efficiency opportunities in supply chain, marketing spend, and overhead. At the same time, the company will continue to support innovation in high-growth segments such as tequila and ready-to-drink cocktails. Balancing short-term financial goals with long-term brand health will be critical to avoid damaging Diageo’s market positioning.
Looking Ahead to Permanent Succession
While Jhangiani focuses on the immediate turnaround, Diageo’s board has initiated a global search for a permanent CEO. Candidates will be evaluated on their ability to blend consumer marketing expertise with financial acumen. The ideal successor will need to rebuild momentum in core markets, drive premiumisation strategies, and navigate regulatory complexities in the United States, Europe, and emerging regions. Internal prospects such as global brand presidents may be considered alongside external leaders with strong track records in consumer goods turnarounds. The board’s deliberations will reflect the dual imperative of stabilizing current operations and charting a bold vision for future growth.
Broader Lessons in Crisis Leadership
Diageo’s response to leadership challenges underscores key lessons for boards and executives. First, rapid performance declines demand decisive action and clear communication with stakeholders. Second, appointing a financial leader in times of distress can provide the rigor needed to regain control, even as the search for long-term vision continues. Third, cost-cutting programs must be paired with targeted growth investments to avoid stifling innovation. Finally, robust succession planning should ensure that internal candidates are ready to step into critical roles, preserving institutional knowledge.
Closing Management Takeaway
Diageo’s leadership transition demonstrates the value of aligning executive talent with organizational priorities during a crisis. Boards should be prepared to pivot to leaders with the skills most needed in the moment, whether that is financial stewardship or product and marketing focus. Cost-cutting and asset sales can stabilize performance but must not undermine brand equity or long-term growth initiatives. Transparent communication and structured performance reviews help rebuild investor confidence. Finally, a thorough succession process that balances internal development with external perspectives will position companies to emerge stronger from turbulent periods.
Written By,
Patrick Endicott
Patrick is the Executive Director of the Society for Advancement of Management, is driven by a deep commitment to innovation and sustainable business practices. With a rich background spanning over a decade in management, publications, and association leadership, Patrick has achieved notable success in launching and overseeing multiple organizations, earning acclaim for his forward-thinking guidance. Beyond his role in shaping the future of management, Patrick indulges his passion for theme parks and all things Star Wars in his downtime.