Diageo cuts nearly 2,000 jobs as drinks giant launches £740m turnaround plan

18 August 2026 , 15:42

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Diageo cuts nearly 2,000 jobs as drinks giant launches £740m turnaround plan

Diageo slashed nearly 2,000 jobs in the year to June as the struggling drinks giant launches a drastic restructuring to revive its fortunes.

Total headcount fell 6 per cent to 27,938 on a full-time basis, down from 29,860 in the previous year, its annual report showed.

The vast majority of the cuts came in Africa – one of its fastest-growing regions – which cut 928 jobs, followed by 405 corporate roles across the business.

Diageo shed 356 roles in Asia Pacific and 129 in North America, which have dragged on sales over the past year, but added 104 roles in Europe, where demand for Guinness has helped offset the decline in other divisions.

It comes as chief executive Sir Dave Lewis, who joined in January, this month outlined a £740million cost-cutting drive over the next three years.

Lewis, the former Tesco chief dubbed ‘drastic Dave’, said there would be ‘significant job cuts’ at the FTSE 100 firm – whose brands include Johnnie Walker whisky and Smirnoff vodka – to restore its ‘winning culture’.

He previously said a ’country by country’ approach had become a ’route to failure’. 

A fresh round of job cuts will add to the thousands of jobs already lost in the year to June 30, with the final figure expected to rise as most of the reductions across its regional markets are expected to be completed by September 1.

Lewis refused to reveal how many more jobs will be cut over the next three years but he is expected to focus on core finance, technology and HR roles, rather than brands and marketing.

Diageo has said it will pile more money into cutting the prices of its products to appeal to cash-conscious consumers, and expand its fastest-growing drinks, including Guinness and canned cocktails.

Thomas Brown

Head of Investigations