United Spirits, owned by Diageo, plans to cut about 100 jobs in India as part of a global cost-saving drive.
The move comes despite strong FY26 results, with net sales up 7.6% and EBITDA up 11.6%.
A broader review could impact up to 200 positions as the company streamlines operations and closes plants.
United Spirits to Cut 100 Jobs in India amid Diageo's Global Cost-Cutting Drive
The cuts affect only a small fraction of USL’s roughly 2,400 employees, mainly impacting mid- to senior-level staff
United Spirits to Cut Around 100 Jobs File Photo
Summary
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United Spirits (USL) is cutting around 100 jobs in India as part of parent Diageo's global cost-cutting programme, Economic Times reported. The reductions aim to streamline operations and improve productivity across functions.
The layoffs will mainly impact mid- to senior-level staff and represent one of the largest workforce reductions at the company since USL's acquisition by Diageo.
The cuts affect only a small fraction of USL’s roughly 2,400 employees. The review is still underway, and as many as 200 more positions may be affected, although the exact figure has not yet been determined, as per ET.
Reorganisation Occurs Despite Robust Results
The reorganisation is taking place even after a strong year for the company. United Spirits posted a 7.6% increase in net sales value and an 11.6% rise in EBITDA in FY26.
In the previous quarter, the prestige and above category, which encompasses brands like Johnnie Walker, Black Dog and Antiquity, accounted for more than 90% of total net sales.
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According to the ET report, earlier this month, USL announced plans to close its manufacturing plant in Hyderabad as part of its multi-year programme to enhance supply chain agility. The facility accounted for roughly 2% of United Spirits’ revenue in FY26.
This closure comes after another facility in Hyderabad was shut down last year and a plant in Uttar Pradesh was closed in 2023 as part of the programme, which was unveiled in December 2022.
India continues to be one of Diageo’s key volume-driven growth markets. The country is the largest whiskey market globally and the second-largest consumer of spirits in the world.
Industry-Wide Share Gains
Shares of alcoholic beverage companies traded higher earlier this month, after industry bodies welcomed the implementation of the India-UK Free Trade Agreement, which is expected to lower tariffs on Scotch whisky imports and accelerate premiumisation in the domestic spirits market.
Among the major gainers, Radico Khaitan rose nearly 4% to ₹3,715, while United Spirits gained 3.88% to ₹1,358. Globus Spirits advanced 3.63% to ₹901, and Tilaknagar Industries climbed 2.74% to ₹440.
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JPMorgan reiterated its Overweight rating on United Spirits and maintained a target price of ₹1,510. The brokerage said the company's growth outlook for FY27 remains constructive, supported by double-digit prestige and above volume growth aspirations and ongoing product innovation.
JPMorgan highlighted the McDowell's brand refresh, expansion in the vodka segment, and category-building efforts in tequila as key growth drivers. It also noted that the India-UK FTA could provide incremental upside.