Diageo is cutting up to 30 per cent of roles across some teams as new chief executive Sir Dave ‘Drastic Dave’ Lewis launches a sweeping restructuring of the Guinness and Johnnie Walker owner.

Some employees have already lost their jobs, although the total number of roles affected across the drinks giant has not been determined, according to Reuters.

The reductions follow an instruction from Lewis to slash overheads after a meeting with Diageo’s business leaders in Edinburgh during the company’s fourth quarter.

A group of around 100 senior leaders is expected to shrink by between 20 per cent and 30 per cent, while one large regional business division is reducing its workforce by between 25 per cent and 30 per cent.

Lewis has also ordered overhead reductions of up to 40 per cent in some markets and 50 per cent within one centralised global division.

Managers are reportedly considering office closures and other savings to limit the number of redundancies required.

Diageo, which employs more than 29,000 people worldwide, said it had previously announced plans to redesign its operating model to improve competitiveness and generate more sustainable returns.

The company added that it would prioritise informing employees about organisational changes before updating investors at its capital markets day on 6 August.

Lewis steps up Diageo turnaround

Lewis joined Diageo in January following a series of setbacks that damaged investor confidence and sent the company’s share price down by more than half over five years.

The former Tesco boss earned the nickname ‘Drastic Dave’ after leading a major turnaround and cost-cutting programme at the supermarket group.

He has taken charge of Diageo as spirits manufacturers contend with weaker consumer demand, particularly in the US, where cost-of-living pressures have prompted shoppers to reduce their alcohol spending.

In February, Diageo cut its full-year organic sales forecast and said it expected revenue to decline by between two per cent and three per cent.

The drinks group also halved its interim dividend to 20 cents per share as Lewis sought to preserve cash, reduce debt and fund investment in the business.

Diageo’s sales have been particularly weak across the US and China, including within tequila, which had previously been an important growth category for the company.

Lewis has indicated that Diageo could place greater emphasis on more affordable, mass-market spirits and reduce prices across parts of its portfolio. He has also identified customer service as an area requiring improvement.

Cost-saving programme accelerates

The latest restructuring comes on top of Diageo’s existing Accelerate programme, which is targeting approximately $625m (£458m) of savings by 2028.

The company expects the programme to deliver around $300m (£220m) of savings during its current financial year, although it is unclear whether the latest cuts are included in that target or represent additional reductions.

Diageo launched Accelerate to simplify its operating model, improve cash generation and help reduce a net debt pile that stood at $21.9bn (£16bn) at the end of its 2025 financial year.

The group’s portfolio includes Smirnoff, Baileys, Gordon’s, Captain Morgan and Don Julio alongside Guinness and Johnnie Walker.

Lewis is expected to provide further details about the restructuring and his wider turnaround plan at the company’s investor event on 6 August.

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