Diageo cost‑cutting and restructuring

In early August 2026 Diageo announced a multi‑year cost programme aimed at restoring organic revenue growth to a low‑single‑digit rate by fiscal 2028/29 after a 2 % sales decline and a $19.6 billion revenue drop. The plan was paired with the appointment of former Procter & Gamble executive Sujay Wasan as President of the Asia‑Pacific business.

The following day the company detailed the financial scope of the effort, unveiling a $1 billion cost‑saving programme over three years as part of a broader $1.2 billion restructuring. Savings are to come from an operating‑framework redesign ($850 m) and supply‑chain initiatives ($150 m), while restructuring costs include $1.2 billion in charges and $1.5 billion in impairment linked to hyperinflation in Turkey and brand write‑downs. Operating profit fell 27.2 % and net sales slipped 3 %, with weakness in North America and Asia‑Pacific driving the decline. Adjusted operating profit rose 2 % to $5.7 bn.

The plan may involve staff cuts of 20‑30 % and is intended to fund selective innovation without further profit erosion. Investors reacted positively, with Diageo shares gaining 6‑7 % after the announcement. The restructuring also includes a strategy to double Guinness capacity by 2029 and to expand ready‑to‑drink cocktail offerings.