Penfolds owner prunes 170 jobs

By the Editorial Team · Thursday, October 8, 2026

Treasury Wine Estates is cutting 170 jobs and reorganizing into four regional markets to improve efficiency following a substantial AUD 1.08 billion loss and vineyard impairments. The changes aim to drive cost savings of AUD 100 million by 2029 while focusing growth efforts on key brands and priority markets like China and Australia.

Treasury Wine Estates, the Australian winemaker behind brands such as Penfolds, Wolf Blass, Lindeman’s, and Pepperjack, has announced the elimination of 170 jobs as part of a comprehensive operational and regional restructuring plan. The layoffs primarily affect roles in marketing, information technology, finance, and support functions, with most redundancies concentrated at the company’s Melbourne headquarters and other office locations. Some job cuts have reportedly occurred at vineyard sites as well.

The announcement follows Treasury Wine Estates’ disclosure in August of a statutory loss of AUD 1.08 billion, which included previously indicated impairments of AUD 1.3 billion. These impairments stem from a writedown involving US vineyards and adjustments to the supply of wine across the company’s customer base. CEO Sam Fischer initiated the restructuring to position the company better amid a challenging global environment for wine sellers.

Effective October 1, the company will transition to a regional operating model, dividing its operations into four key markets: Greater China, the Americas, Australia and New Zealand (ANZ), and Europe alongside emerging markets. This shift forms part of a broader effort to improve efficiency and streamline operations. Treasury Wine Estates has previously outlined plans to achieve annual cost savings of AUD 100 million by fiscal year 2029, with expected benefits of around AUD 40 million projected for fiscal 2027.

While redundancies have been implemented, Treasury Wine Estates has emphasized its ongoing commitment to growth. A company spokesperson noted that investment will continue in priority commercial roles, particularly in Australia, New Zealand, China, and emerging markets. Expansion efforts will focus on flagship brands including Penfolds, DAOU, and Matua.

Recent market developments include the return of Penfolds 407 wine to China after a three-month supply embargo. This pause was part of a strategic move by Fischer and the Penfolds team to clear surplus inventory and restore control over the brand’s premium positioning, which had been diluted by unofficial discounting and activity on e-commerce platforms. The company is now aiming for strong sales during the recent Chinese Moon Festival and the upcoming Christmas season.

The restructuring and job cuts reflect broader challenges facing Treasury Wine Estates as it adapts to shifting market dynamics and seeks to safeguard its portfolio in competitive international markets.

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