The drinks giant, whose brands include Guinness, Johnnie Walker, Smirnoff and Captain Morgan, had an average of 27,938 full time employees in the year to 30 June 2026, according to its annual report, down from 29,860 the previous year - a reduction of 1,922 people.
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However, average staff costs rose from $2.48bn to $2.55bn during the same period.
Cost cutting plan
Lewis, who joined Diageo as chief executive in January, has pledged to cut $1bn in costs over the next three years as the group looks to reverse declining profits and respond to waker demand in parts of its business.
The Financial Times reported the restructure is expected to lead to further job losses, although Diageo has not confirmed how many roles could be affected.
The group is also reshaping its operating model and supply chain, while increasing focus on mass market brands and ready to drink products.
The move comes after Diageo reported earlier this month that its sales fell 2% to £19.6bn in the year to June 2026.
Reported operating profit dropped 27.2% to $3.2bn, largely due to restructuring costs and write downs.
Guinness growth
Despite the wider decline, Guinness continued to outperform, with sales in Great Britain up 2.9%, driven by double digit growth in pubs and bars.
Globally, Guinness sales rose 12%, while beer was one of Diageo’s strongest performing categories, with sales up 5%.
Diageo has also said it plans to double Guinness production capacity as part of a £3.7bn investment programme, including $1bn earmarked for the stout.
The update follows a 5.2% price increase for Guinness Draught from April this year, which Diageo said at the time reflected rising costs across its supply chain.