Are layoffs coming to Diageo’s Kentucky distilleries? What we know
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- Diageo plans to cut $625 million in costs by 2028, triggering some layoffs.
- Sales of Bulleit bourbon fell 7.3% in the U.S., impacting Kentucky operations.
- Stitzel-Weller bottling already shut down; Lebanon plant paused distilling in early 2025.
As a wide array of President Trump’s tariffs kick in this week, some companies are expected to trim costs by shedding employees.
British-based global spirits giant Diageo confirmed there will be job cuts as it moves to save another $125 million over the next three years.
The announcement came Wednesday, a day after the company released full-year fiscal results that reported net sales up 1.7%, while profits were essentially flat. Sales of Bulleit, its Kentucky bourbon and whiskey brand, were down 7.3% in the U.S., the company said.
Interim CEO Nik Jhangiani said Wednesday that with Diageo’s plan to save $625 million over the next three years, an increase over the $500 million cuts announced earlier this year, there will be layoffs.
“In terms of the increased cost savings to $625 million over the next three years, I think this is just continued work that we’ve been doing since May, as we continue to refine areas where we can unlock more savings opportunities.,” Jhangiani said.
“This is really not about job cuts or elimination of roles. Yes, there will be some, but that’s not what this will be about. This is about really freeing up resources and dollars where we can reinvest for the business.”
Jhangiani also said Diageo could sell more “non-core, non-strategic” brands. Diageo owns some of the biggest alcohol brands in the world, including Don Julio Tequila, Johnnie Walker Scotch whisky and Guinness beer, as well as Bulleit, which is one of the top-selling Kentucky bourbon brands.
Don Julio, along with Crown Royal Blackberry and ready-to-drink products, was responsible for much of Diageo’s growth last year.
So, could layoffs be coming to Diageo’s Kentucky distilleries?
It was not clear as of Thursday afternoon. Asked about potential Kentucky job cuts, a Diageo spokesperson said Thursday: “At this time, we have nothing further to share beyond what has already been shared.”
The company owns three distilleries in Kentucky: two that make Bulleit in Shelbyville and Lebanon, and the Stitzel-Weller Distillery in Shively that is home to Blade & Bow.
Earlier this year, Diageo closed the bottling facility at its Stitzel-Weller Distillery in Shively outside Louisville, consolidating operations with other Kentucky properties.
A spokesperson said in a statement at the time: “Over the next 2-3 years, we will also be shifting the majority of maturing and warehousing operations from Stitzel-Weller to Diageo’s other Kentucky facilities, in Shelbyville and Lebanon. We do not take these decisions lightly, and we recognize the impact on our employees. For those affected, we are providing support in the form of severance packages, outplacement assistance, and employee assistance resources, as well as information on open roles across our organization.”
Diageo said the company would be “evaluating our real estate strategy with this property at a later date.”
The company also paused distilling and barrel-filling operations at its plant in Lebanon from February through the end of the fiscal year.
he plant reopened in July.
This story was originally published August 7, 2025 at 12:38 PM.
