Diageo Cuts 2,000 Jobs Amid $1.2 Billion Restructuring Plan

Global spirits maker Diageo reduced its average full-time workforce by 1,922 employees in the year ending June 30, 2026, bringing total headcount down to 27,938 from 29,860. The cuts are part of a $1.2 billion restructuring program designed to deliver $850 million in savings over two years. The company is targeting global back-office functions and areas of duplication to offset a 27% decline in operating profit to approximately $3.2 billion and a 3% drop in net sales to $19.6 billion.

Chief Executive Sir Dave Lewis is leading the turnaround strategy, which includes lowering prices on certain brands and expanding categories like canned cocktails. While North America and Asia Pacific have struggled, Guinness saw global sales rise 12%, prompting a $1 billion investment to double its production capacity. Despite the workforce reductions, average staff costs rose to $2.55 billion.

Separately, the Competition Authority of Kenya has stalled Diageo's $2.3 billion sale of its 65% stake in East African Breweries Ltd to Asahi Group Holdings. The regulator proposed that East African Breweries Ltd set aside up to 15 billion Kenyan shillings in reserve funds for potential liabilities. Diageo has rejected these conditions as unlawful, stating there was no basis for the requirements, though discussions with the authority continue.