$DEO Cuts Nearly 2,000 Jobs in $1.2 Billion Restructuring as North American Sales Weaken

Global beverage giant Diageo ($DEO) has reduced its workforce by nearly 2,000 employees—roughly 6.4% of its staff—as part of a sweeping $1.2 billion restructuring plan. The company behind Guinness and Smirnoff is investing heavily in a new operating framework and supply-chain adjustments to improve efficiency and competitiveness.
The overhaul follows a challenging fiscal 2026 for the company, largely driven by softer demand in North America, its biggest market. $DEO reported a 3% drop in net sales to $19.64 billion and a 27.2% decline in operating profit to $3.16 billion, weighed down by exceptional restructuring expenses and impairment charges.
Looking ahead, $DEO expects the restructuring to generate roughly $1 billion in savings and support approximately $8 billion in cumulative free cash flow between fiscal 2027 and 2029. Despite ongoing turnaround efforts, the company projects that organic net sales in North America will continue to decline by a mid-single-digit percentage in fiscal 2027.