Diageo has reduced its global workforce by nearly 2,000 employees, as the owner of Guinness moves ahead with a major restructuring aimed at reducing costs and returning the business to growth.
The company reported an average of 27,938 full-time employees in 2026, down from 29,860 the previous year, a reduction of more than 6%.
The cuts come as Diageo works through a three-year plan to reduce costs by approximately $1 billion.
Why is Diageo cutting jobs?
Diageo says the workforce reductions are part of a broader restructuring programme designed to simplify the business, reduce costs and improve its financial performance. The company’s newly appointed CEO, Dave Lewis, previously warned employees that a restructuring of this scale would inevitably result in job losses.
While the company had not initially disclosed the number of positions that would be eliminated, its latest annual report provides a clearer picture of the impact. For employees, the restructuring represents a significant change at one of the world’s largest beverage companies.
How many Diageo jobs were cut?
Diageo’s average full-time workforce fell by 1,922 employees, from 29,860 to 27,938. That represents a reduction of more than 6% of its global full-time workforce.
The company is also targeting $1 billion in cost savings over the next three years, suggesting that further changes to its operations could form part of its longer-term turnaround strategy.
What is happening at Diageo’s North American business?
North America is a particularly important part of Diageo’s growth strategy. The company reported an 8.4% decline in its North American business during fiscal 2026, making the region a key area of focus as Diageo looks to improve its performance.
John O’Keeffe, previously CEO of Diageo’s Asia Pacific operations, became CEO of the company’s North American business in April. The leadership change comes as Diageo attempts to strengthen the region and rebuild sales.
Who else left Diageo?
The restructuring has also resulted in changes to Diageo’s senior leadership team. Several senior executives have departed, including:
- Louise Prashad, chief human resources officer
- Hina Nagarajan, president of Diageo Africa
- Sally Grimes, president of Diageo North America
Other executives have taken on new responsibilities as the company reorganizes its regional operations.
Sujay Wasan was appointed president of the Asia Pacific region, while Dayalan Nayager became president of the newly combined Europe, Middle East and Africa region.
How is Diageo performing financially?
Diageo reported $19.6 billion in net sales for fiscal 2026, representing a 2% decline from the previous year. The company’s turnaround strategy is focused on areas where it sees opportunities for profitable growth. Ready-to-drink beverages and Guinness are among the product categories Diageo is emphasizing as it works to strengthen the business.
What does the Diageo restructuring mean for employees?
For employees affected by the restructuring, the immediate concern is likely to be their termination and severance rights.
If you are a non-union Diageo employee in Ontario who has been laid off, the severance package offered by your employer may not necessarily reflect your full legal entitlements.
Employment termination rights can depend on factors such as your age, length of service, position, compensation and employment agreement. Depending on the circumstances, an employee may be entitled to more than the minimum amounts provided under Ontario employment legislation.
Whitten & Lublin Employment Lawyers can help non-union employees understand their rights, assess their potential termination and severance entitlements, and determine whether the package offered is appropriate.
If you are a non-union Diageo employee who has been laid off, Whitten & Lublin can help.
Call (416) 640-2667 or reach out online to discuss your options.
