World's biggest spirits maker pops 6% on $1 billion cost-cutting plan

Diageo shares jumped Thursday after the company unveiled a $1 billion three-year savings plan to turn around the struggling business.The world's biggest spirits company, whose brands include Johnnie Walker scotch whisky, Smirnoff vodka, Tanqueray gin, Captain Morgan rum, Don Julio tequila and Guinness stout, said restructuring costs relating to the savings program will amount to $1.2 billion."This new strategy, executing with a new, more agile, competitive and cost-effective operating model, gives us confidence that we can return Diageo to a business consistently creating value for shareholders," said CEO Dave Lewis in a statement.Shares were last trading 5.6% higher. TurnaroundLewis recently took the top position at the company, succeeding Debra Crew, who stepped down in July last year.Lewis noted on Thursday that there was "hard work ahead," particularly in North America where organic sales declined 8.4% in the year ending June 30.On Jan. 4, 2022, shares of Diageo hit an all-time high, making it the FTSE 100′s third most valuable company, with a stock market value of nearly £90 billion (roughly $121 billion). But since then, the share price has more than halved as its fortunes have waned. The stock is down nearly 13% over the past 12 months.Stock Chart IconStock chart iconDiageo shares over the past 12 months.This is a developing story. Please refresh for updates.