Diageo cuts jobs while Shede Spirits reports profit drop

Diageo, the producer of brands such as Don Julio and Guinness, has announced the cutting of 1,922 jobs globally as it concludes its fiscal year. According to filings with the U.S. Securities and Exchange Commission (SEC), the company’s workforce decreased by 6%, falling from 29,860 to 27,938 employees. Approximately 1,000 of these cuts were concentrated in the African division, which is slated to merge with the European unit. This restructuring is part of a cost-reduction strategy led by CEO Dave Lewis, aimed at saving approximately $1 billion over three years.

Separately, Shede Spirits reported a 67.26% drop in attributable net profit for the first half of 2026. The company attributed the decline to a strategic decision to reduce shipment volumes to manage inventory levels and stabilize prices within the baijiu market. Total revenue reached 2,287 million yuan, with alcohol sales declining by 15.75% year-over-year. Despite the profit drop and a net loss in the second quarter, the company noted that operating cash flow returned to positive territory as it accelerates inventory reduction amid a challenging period for the Chinese baijiu sector.