United Spirits set to cut 100 jobs to curb costs, streamline operations

Mumbai: United Spirits (USL) is axing about 100 Indian jobs as part of parent Diageo's global cost cutting programme people familiar with the matter told ET, as the world's largest spirits maker looks to streamline operations and improve productivity.

These job cuts would affect employees across functions, especially those in mid- to senior levels of the respective hierarchies, and are among the most significant workforce reductions at the company since Diageo's acquisition of USL a decade ago.

While the layoffs are part of a global strategy to sharpen its cost base, the company will continue to invest in priority brands and growth markets in India, the people said. "The review remains ongoing and additional 200 roles could be impacted although the final number has not been decided," said one of the people cited above. Another source concurred on the likely expansion of the scope of the exercise.

To be sure, the reductions represent a small portion of USL's 2,400-strong workforce.

A spokesperson for USL declined to comment. India remains one of Diageo's most important growth markets as its biggest market by volume, with United Spirits having a leading position in the country's premium spirits segment. India is the world's biggest whiskey market and the second largest spirits consumer. The company has been focusing on premiumisation, expanding higher-margin brands and improving operational efficiency.

Last quarter, sales from the prestige and above segment, which includes brands such as Johnnie Walker, Black Dog and Antiquity, contributed over 90% of net sales.

The restructuring comes despite a strong year for United Spirits, which reported 7.6% growth in net sales value and an 11.6% rise in Ebitda in FY26. It had launched a multi-year supply chain overhaul focused on footprint optimization and productivity gains, with management in its investors call last quarter saying 90% of planned cost-saving benefits are expected to be realised by FY27.

Earlier this month, USL said it will shut its manufacturing facility in Hyderabad as part of its multi-year supply chain agility programme. The unit contributed about 2% of United Spirits' revenue in FY26 and the closure follows the shutdown of another Hyderabad facility last year and a plant in Uttar Pradesh in 2023 under the programme, which was announced in December 2022.