Diageo Korea launches voluntary redundancy program for first time in 2 years as whisky market shrinks

Diageo Korea, the operator of the Johnnie Walker whisky brand, is carrying out a voluntary redundancy program for the first time in two years.

According to industry sources, Diageo Korea began accepting applications for voluntary redundancies on Monday — about two years after it ran an early retirement program in 2024. Under the program, departing employees will receive severance pay of up to 36 months' salary based on years of service, along with a special consolation payment of 20 million won ($13,500).

The move reflects deteriorating earnings. According to the Financial Supervisory Service's DART system, Diageo Korea posted sales of 160.6 billion won in fiscal year 2025 (July 2024–June 2025), down 1.4 percent from the previous year. Operating profit plunged 48.4 percent to 9.4 billion won.

The company's earnings have been on a downward trajectory since peaking in June 2023. Diageo Korea appointed Andrew Orton as its new chief executive, effective July 1, in a bid to revitalize the business. A company official said Diageo Korea "reviewed its operating model to ensure the sustainability of the business, and as part of that process decided to proceed with the voluntary redundancy program."