Diageo (DEO) Slashes Jobs in Cost-Cutting Blitz Under “Drastic Dave”

FSSAI issued 150 notices to food companies, including Nestle India, PepsiCo, and Coca-Cola India, for misleading ads, false claims, and labeling violations. The regulator also took action against e-commerce platforms and food service establishments, suspending five Domino's licenses and canceling one Amazon warehouse license.

FSSAI lifted its ban on select Diageo products, including those from United Spirits' Baramati site and a third-party Madhya Pradesh plant. The regulator found compliance issues but revoked bans after engagement. Diageo denies misconduct and agrees to reformulate some products. FSSAI also confiscated 18,000 cases of Diageo's vodka and whisky over packaging concerns.

Diageo will reformulate whisky and rum brands in India after regulators banned products with added flavorings. The company agreed to remove added flavorings and clarify labeling. Affected brands include Royal Challenge and McDowell's No. 1 Celebration Matured XXX Rum. Diageo views India as a key growth market, with Royal Challenge selling 4.5 million cases annually.

Diageo's workforce fell by nearly 2,000 employees in the year ending June 2026, with average full-time employees dropping to 27,938. The company is implementing a $1.2bn restructuring plan to achieve $850m in savings over two years. Diageo reported a decline in net sales to $19.6bn, citing weakness in North America and Asia Pacific, despite growth in other regions. The company highlighted Guinness, Smirnoff RTD, and Johnnie Walker as strong performers.

Diageo, owner of brands like Guinness and Johnnie Walker, cut 2,000 jobs amid restructuring, with staff costs rising to $2.55bn. CEO Debra Lewis aims to reduce costs by $1bn over three years. Sales fell 2% to £19.6bn, with operating profit down 27.2% to $3.2bn. Guinness sales grew 12% globally, with plans to double production capacity.

Diageo, the world's largest alcoholic beverage company, is restructuring, cutting 2,000 employees and aiming for $1 billion in cost savings over three years. CEO Dave Lewis plans further job cuts, with analysts predicting 3,000-5,000 layoffs. The company reported a 27% drop in operating profit to $3.156 billion and a 3% decline in net sales to $19.643 billion for fiscal 2026. Investments will focus on mass-market brands and faster-growing markets like RTD canned cocktails.