Diageo reduced its workforce by almost 2,000 employees in the year to June, bringing the average headcount to 27,938 from 29,860 a year earlier, according to its annual report.

New chief executive Sir Dave Lewis, known as “Drastic Dave” for his cost‑cutting at Tesco, is pursuing a $1bn savings plan over three years to reverse profit declines caused by weaker spirits demand and higher input costs. The company reported revenue of $19.6bn, down 2% organically, and operating profit fell 27% to $3.2bn after restructuring charges and a $1.5bn impairment in Turkey.

Lewis has already reshaped regional management and ordered department heads to cut headcount and other expenses. The restructuring is expected to eliminate 3,000–5,000 more jobs as Diageo overhauls its operating model and supply chain, while redirecting investment to mass‑market brands such as Smirnoff and Captain Morgan and expanding ready‑to‑drink canned cocktails.

The UK government’s increase in employers’ National Insurance contributions from April 2025 also lifted staff costs to $2.55bn despite the headcount reduction. Diageo targets low single‑digit organic sales growth and mid single‑digit operating profit growth over the medium term.