Diageo job cuts: what redundancy means for UK workers
Diageo, the drinks giant behind Guinness, Johnnie Walker and Smirnoff, is preparing to announce significant job cuts this week. New chief executive Dave Lewis — nicknamed “Drastic Dave” for his tough management style — will reveal the company’s turnaround strategy on Thursday 6 August, and staff layoffs are expected to be part of the plan.
If you work in the drinks industry or for a large employer, understanding your rights during redundancy is crucial. Here’s what you need to know.
What happens during redundancy?
When a company cuts jobs, employees may be made redundant. Your employer must follow a fair process, which includes consulting with staff, considering alternatives like redeployment, and selecting people fairly. You have the right to a statutory redundancy payment if you’ve worked there for at least two years.
Statutory redundancy is calculated as one week’s pay per year of service (up to 20 years), capped at £643 per week (as of April 2026). So if you’ve worked somewhere for 10 years on average pay, you could receive around £6,430 before tax.
What support is available?
If you’re made redundant, you may be eligible for Universal Credit or jobseeker’s allowance while you look for new work. Your local Citizens Advice bureau can help you understand your entitlements and complete applications — it’s free and confidential.
Your employer should also signpost support. Many offer outplacement services, which help you update your CV, prepare for interviews and find new roles.
What to do now
If you work for Diageo or a similar company facing restructuring, start building an emergency fund if you haven’t already. Review your household budget to identify where you could cut costs. Check your redundancy entitlements by looking at your employment contract and asking HR questions.
Most importantly, don’t panic. Redundancy rights in the UK are strong, and there’s plenty of support available. If you’re worried about your job, contact Citizens Advice or ACAS (the Advisory, Conciliation and Arbitration Service) for free, impartial guidance.