Diageo plans major Guinness expansion alongside job cuts
Diageo will invest $1 billion to raise Guinness capacity from 8.2 million to 15.7 million hectolitres by 2031 while cutting jobs and targeting $1 billion in annual savings.
In short
- Diageo will invest $1 billion to raise Guinness capacity from 8.2 million to 15.7 million hectolitres by 2031 while cutting jobs and targeting $1 billion in annual savings.
Diageo plans to nearly double Guinness production capacity by 2031 while cutting an unspecified number of jobs as part of a broad turnaround programme under chief executive Dave Lewis.
The London-based drinks group said Guinness capacity would rise from 8.2 million hectolitres to 15.7 million hectolitres over the course of the plan. Diageo is committing $1 billion to the brand, with an emphasis on expanding sales in North America and reducing the risk of shortages such as those reported in Britain during recent peak periods.
The expansion sits alongside a cost-cutting drive that targets $1 billion in annual savings within two years. Diageo expects the restructuring to cost $1.2 billion and has allocated $514 million for employee severance. Lewis said the company had identified extensive duplication across roles, but did not specify how many positions would be removed from its workforce of about 30,000.
The overhaul follows weaker trading in two important markets. Diageo reported annual sales of $19.6 billion, down 2 percent, as demand remained soft in the United States and China. Pre-tax profit fell 26 percent, from $3.5 billion to $2.6 billion, after one-off charges including restructuring costs and an impact from the company’s Turkish operations. Operating profit excluding one-off items and costs such as debt interest was $5.7 billion, slightly above analysts’ expectations cited by The Guardian.
Lewis said he expected North America, Diageo’s largest region by revenue, to take two years to return to growth. The company maintained its annual dividend at $0.50 a share after reducing the payout earlier in the year to support the turnaround.
Diageo, whose portfolio includes Johnnie Walker and Smirnoff, also plans to broaden its focus beyond premium products. The company intends to give more attention to mid-market brands, smaller package sizes and ready-to-drink products as consumers remain cautious about higher-priced alcohol.
Shares in Diageo rose more than 6 percent in afternoon trading on Thursday, August 6, following the announcement. Lewis, a former Tesco chief executive, took charge in November 2025 with a mandate to revive the company after a period of weaker performance and investor concern.
