Diageo Cuts Nearly 2,000 Jobs in Restructuring, Annual Report Shows
Diageo disclosed in its annual report that it reduced its global workforce by nearly 2,000 positions, a drop of more than 6%, as part of a restructuring plan to return the spirits and beer maker to growth. The company also announced several executive leadership changes under new CEO Dave Lewis.
Diageo has trimmed its global workforce by nearly 2,000 jobs, a reduction of more than 6%, according to its annual report released Tuesday. The move is part of a broad restructuring initiative designed to steer the spirits and beer maker back toward growth.
The London-based company, best known for Guinness, reported an average of 27,938 full-time employees in fiscal 2026, down from 29,860 in the prior year. Earlier this month, Diageo unveiled a plan to cut $1 billion in costs over the next three years.
During the company's annual meeting earlier this month, newly appointed CEO Dave Lewis indicated that the program would involve layoffs, though he did not specify a number at that time. He acknowledged the significant impact on staff, saying, "A restructuring program of this size obviously has very significant impacts on Diageo colleagues, and I'd like to put on the record my deep appreciation for the way that Diageo colleagues have engaged with this changed program, most of which has been communicated throughout the business a month or so ago."
The annual report also detailed leadership changes to Diageo's executive team under Lewis. John O'Keeffe, previously CEO of the Asia Pacific region, became CEO of Diageo's North American business in April. North America is a key focus in Diageo's growth strategy, particularly in the U.S., where the region experienced an 8.4% decline in fiscal 2026.
In other appointments, Sujay Wasan was named president of the APAC region, and Dayalan Nayager became president of the newly combined Europe, the Middle East and Africa region.
Several executives departed the company, including Louise Prashad, chief HR officer; Hina Nagarajan, president of Diageo Africa; and Sally Grimes, president of Diageo North America.
Diageo's net sales for fiscal 2026 totaled $19.6 billion, a 2% decrease from the previous year. The company's turnaround plan is largely centered on boosting already profitable segments, particularly ready-to-drink cocktail offerings and Guinness.