LONDON, June 23, 2026, 16:15 BST
Diageo shares rose over 2% Tuesday after reports that up to 150 Irish jobs could be cut. That’s as CEO Dave Lewis moves to reduce costs and streamline operations at the Johnnie Walker and Guinness maker. Ireland’s enterprise department got official word of the planned layoffs on Monday, but Diageo hasn’t confirmed how many roles are affected.
Diageo shares rose 2.3% to about 1,552 pence at 15:57 BST, while the FTSE 100 was up around 0.2%. Diageo plans to cut about 12% of its workforce in Ireland, which employs more than 1,200 people.
Diageo says it has started collective redundancy talks, which it says means giving notice to the Irish government and sitting down with workers before jobs are cut. The company said staff will get the first update and pointed back to its February plan to change how it operates.
Lewis told top managers to cut costs and staff, setting department targets instead of one global layoff number. The Irish filing puts numbers to that plan, turning company targets into a proposed headcount cut.
Diageo said it still sees its Accelerate programme bringing in about $300 million in savings by the end of 2026. Guidance for organic sales is unchanged, with Diageo forecasting a drop of 2% to 3%. Organic operating profit should come in flat to up by a low-single-digit percentage. “North America remains our biggest challenge, where market conditions are soft and our offer needs to be more competitive,” Lewis said. Diageo
Diageo posted a 0.3% rise in third-quarter organic sales, beating forecasts as demand for Guinness and shipments tied to the soccer World Cup gave a lift. But North American sales dropped 9.4%. Diageo cut prices on tequila brands like Casamigos to try to recover volumes.
Heineken shares rose around 3% Tuesday after the company picked Rafael Oliveira as its next CEO. Barclays analyst Laurence Whyatt said Oliveira has “demonstrated a clear ability to diagnose and reset strategy rapidly” in his current job. Other drinks companies are looking to outsiders too as they try to boost growth. Reuters
Job cuts alone won’t solve cooling demand. Diageo reported a 4% drop in first-half net sales, net debt climbed to $21.7 billion, and the firm trimmed its interim dividend. Tariffs and a poor sales mix hit profit. If demand stays weak, any savings from restructuring could get wiped out by lower prices, slimmer margins, and overhaul glitches.
Diageo faces its next test August 6, when it’s set to report full-year numbers along with a broader strategy review. Investors want to see how far the global job cuts go, what kind of timing management sets out for any savings, and signs that Lewis has steadied Diageo’s key US spirits arm.
