James Watt, the controversial chief executive of beer company BrewDog, has announced he will step down from his role.
BrewDog has come under a lot of scrutiny in recent years, including allegations from staff that it promoted a toxic work culture, and most recently because it withdrew from paying new staff the ‘real’ Living Wage.
Watt’s role will be taken over by chief operating officer James Arrow, but he will remain as a board member and director, as well as part time strategic adviser.
In a statement, Watt said: “During my time at the helm of BrewDog, there have been highs and lows, ups and downs, crazy successes and incredibly hard challenges.
“When I look back on the last 17 years my overwhelming feeling is one of gratitude.”
In 2021, a group of former employees sent an open letter to the business alleging that there was a “culture of fear” operating within BrewDog and that senior managers displayed “toxic attitudes” to junior staff. In response, the company said it would commit to expanding its HR resources under a new people director and head of learning and development, as well as invest in mental health initiatives.
An investigatory programme by the BBC in 2022, ‘The Truth About BrewDog’, contained further disturbing allegations about the working culture, leading the company to complain to regulator Ofcom. Its complaints were not upheld.
Company chairman Allan Leighton said he was “especially pleased that Watt will continue to offer his insight, creative genius and energy to the board”.
“Few have accomplished what he has. From very humble beginnings under his leadership, BrewDog has grown to become the world’s leading craft brewer, employing 2,530 people across its head office, four breweries and over 120 bars,” he added.
Dr Amit Rawal, lecturer in management at Bayes Business School (formerly Cass), said: “This departure from BrewDog shows that whilst a change of leadership can steer a company in a different direction, further work needs to happen to undo a toxic culture and problematic marketing campaigns.
“A culture within a company is embedded in various ways which could go beyond leadership. Furthermore, marketing decisions can be influenced by an array of stakeholders. Depending on the industry and sector, for a company to see changes to its internal culture and external communications – changes need to start by examining the entire firm beyond the leadership level.”
New chief executive Arrow is former managing director of Boots Opticians and also held senior roles at Dixons Carphone.
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