Treasury Wine Estates cuts 170 jobs
The Australian wine producer is reducing its brand portfolio from 76 to fewer than 30 as it targets a return to profitability by fiscal 2028.
AUSTRALIA – Treasury Wine Estates (TWE) has cut approximately 170 jobs, representing around 7% of its workforce, as part of a restructuring programme aimed at simplifying operations, reducing costs and returning the business to profitability by fiscal year 2028.
The ASX-listed wine producer confirmed the redundancies in a statement, saying they would mainly affect corporate functions.
“As part of our transformation to create a simpler and more focused organisation, approximately 170 roles have been made redundant, predominantly across our corporate functions,” TWE said.
The job cuts form part of the company’s multi-year Ascent transformation programme, which targets US$100 million in annual cost reductions within the next three years.
TWE has progressed with the programme’s first two pillars, portfolio evolution and operating model transformation, through the sale of Seppelt, Rouge Homme and Tollana Wines, alongside a transition to a regional operating model.
The final pillar, operating cost optimisation, focuses on streamlining the business and aligning its cost base with a narrower portfolio. TWE plans to reduce its brand portfolio from 76 brands to fewer than 30, prioritising three Power Brands and seven Regional Heroes under a “less-but-better” strategy.
Despite the redundancies, the company said it would continue recruiting for selected growth-focused positions.
“At the same time [as the redundancies], we’re continuing to invest for growth, including recruiting for new roles primarily across our commercial teams in Australia and New Zealand, as well as China and Emerging Markets, focused on our portfolio of priority brands including Penfolds, DAOU and Matua,” the company said.
The restructuring follows a challenging financial year. TWE reported a statutory net loss of A$1.08 billion in fiscal 2026, reflecting A$1.3 billion in impairments against its US-based assets.
Chief executive Sam Fischer previously said the results were in line with expectations and maintained that the transformation programme remained on track.
“What really gives me confidence in relation to our outlook is the strength of our underlying business and the depletion momentum,” Fischer said.
“While there is more to do, we are confident these initiatives will position TWE for improved and sustainable growth over time.”
Fischer is being supported in implementing the Ascent programme by Justin Pipito, who was appointed permanent chief financial officer after serving as interim CFO since June.
TWE expects further brand sales and structural changes as it continues implementing the programme, with cost optimisation and investment in priority brands central to its strategy for achieving sustainable growth and returning to profitability by fiscal 2028.
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