United Spirits, India’s largest spirits company, is set to lay off around 100 employees as part of parent company Diageo’s global cost-cutting programme, reported Economic Times citing people familiar with the matter.
The proposed job cuts are aimed at streamlining operations and improving productivity, even as India remains one of Diageo’s fastest-growing and most important markets.
The report said the layoffs are expected to affect employees across functions, particularly those in mid- and senior-level roles. These would be among the biggest workforce reductions at United Spirits since Diageo acquired the company over a decade ago.
While around 100 jobs are currently expected to be affected, the final number could be higher.
According to the report, the ongoing review may eventually impact another 200 roles, although the final decision is yet to be taken.
Despite the layoffs, the company is expected to continue investing in its priority brands and growth markets in India.
A spokesperson for United Spirits declined to comment on the report.
The proposed layoffs represent only a small portion of United Spirits’ workforce, which stands at around 2,400 employees.
India is Diageo’s largest market by volume and one of its key growth markets globally. The company continues to dominate the country’s premium spirits segment, with brands such as Johnnie Walker, Black Dog and Antiquity driving its premiumisation strategy.
According to the report, products in the prestige-and-above category contributed more than 90% of the company’s net sales in the latest quarter.
The restructuring comes even though United Spirits posted a strong performance in FY26.
The company reported a 7.6% increase in net sales value and an 11.6% rise in EBITDA during the financial year.
Management has also been implementing a multi-year supply chain transformation programme aimed at optimising its manufacturing footprint and improving productivity. During the company’s latest investor call, it said around 90% of the planned cost-saving benefits are expected to be realised by FY27.
The latest job cuts are part of a broader restructuring exercise.
Earlier this month, United Spirits announced the closure of its manufacturing facility in Hyderabad under its supply chain agility programme. The plant contributed around 2% of the company’s FY26 revenue.
The Hyderabad shutdown follows the closure of another facility in the city last year and a plant in Uttar Pradesh in 2023 as part of the same programme.
The proposed layoffs indicate that Diageo is continuing its efforts to simplify operations and improve efficiency, even as it remains focused on expanding its premium liquor business in India.