Diageo has unveiled plans to double Guinness production as part of a major turnaround programme, that will also see the drinks giant reduce roles across its global workforce.

The Johnnie Walker and Smirnoff owner said the overhaul is designed to simplify the business, improve efficiency and support investment behind its strongest growth opportunities.

Chief executive Dave Lewis said Diageo plans to double Guinness capacity by 2029, describing the brand’s future as “very bright”. The investment is also intended to help avoid a repeat of shortages in the UK during peak trading periods.

Lewis admitted the plan would involve job cuts, although the company has not disclosed how many roles will be affected. It had been reported in July that up to 30 per cent of roles could be cut in a sweeping restructuring.

Some employees have already been informed of jobs losses, with Diageo telling investors it expects to incur $514m (£382m) in charges linked to employee severance.

The group is targeting $1bn in annual savings over the next two years through a restructuring programme expected to cost $1.2bn, with the changes aimed at making Diageo more agile and less complex.

Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning

Diageo reported a decline in sales but slightly better-than-expected operating profit, with investors responding positively to the update.

The group has focused heavily on premiumisation over the past decade, but Lewis said the business would now place greater emphasis on a broader portfolio, including mid-market brands and smaller pack sizes for cost-conscious shoppers.

The company is also expected to increase its focus on ready-to-drink products, such as premixed cocktails, where Lewis said the group had underperformed. He promised to amend Diageo’s failure to cash in on the so-called ready-to-drink category. “We’re just going to roll our sleeves up and get on with our own business,” Lewis added.