The company’s cost-saving effort involves some job cuts as it navigates trade disputes and a slowdown in alcohol consumption.

Diageo, the maker of Guinness stout and Smirnoff Vodka, reported Tuesday a sharp drop in annual net profit and raised its cost-savings targets as US tariffs hit.

Diageo has forecast a larger than expected hit to profits from US tariffs this year but raised its cost-savings target, as the spirits group steps up efforts to strengthen its finances amid a global downturn in alcohol consumption.