Diageo Sheds Nearly 2,000 Jobs as 'Drastic Dave' Unveils Major Overhaul
Diageo's Workforce Reduction and Strategic Restructuring
Significant Decline in Employee Numbers
Aug 18 (Reuters) - Diageo's total headcount fell more than 6% year-on-year by the end of June, its annual report showed, as the world's top spirits maker embarks on a restructuring under new CEO Dave Lewis.
The company reported an average of 27,938 employees on a full-time equivalent basis, excluding staff of associates and joint ventures at the end of fiscal 2026, down from 29,860 in the previous year.
Timeline and Scope of Job Cuts
Most of the reductions across its regional markets are expected to be completed by September 1, implying that the final number of impacted staff could be higher.
Diageo declined to comment on Reuters' request seeking details about the job cuts.
Leadership and Cost-Cutting Initiatives
Dave Lewis' Approach to Restructuring
Lewis, nicknamed "Drastic Dave" for his history of cost-cutting at Tesco and Unilever, had said the changes in headcount were focused on global back-office functions and areas of "massive duplication". He has been leading Diageo since January.
Financial Strategy and Brand Expansion
$1 Billion Savings Plan
As part of a $1 billion savings plan, Diageo intends to lower prices on some brands and expand in fast-growing categories, including Guinness and canned cocktails.
Impact on Teams and Overhead
In July, Reuters reported that some Diageo teams were cutting around 20% to 30% of their staff as part of deep reductions in overhead.
(Reporting by Raechel Thankam Job and Yadarisa Shabong in Bengaluru; Editing by Shilpi Majumdar)
