BAT expects to complete the job cuts, which will affect one in five management positions, by January, the company said yesterday. The company employed more than 95,000 people in 2018.
Five months into the job, chief executive officer Jack Bowles is setting out to transform BAT as the company faces pressure to jump-start its underperforming portfolio of cigarette alternatives. As tobacco companies struggle to deal with the shift in smoking to vaping, rival Japan Tobacco Inc. recently announced plans to eliminate 3,720 positions over three years.
The move also comes as after rival Philip Morris International Inc said it approached Altria Group Inc about reuniting after a split about a decade ago. The move would create a global tobacco giant that would dwarf BAT.
BAT has tempered the outlook for growth of smoking alternatives. The cost-saving program will help the company reach its goal of getting £5bil in revenue from new products by 2023 or 2024, the company said. — Bloomberg
We're sorry, this article is unavailable at the moment. If you wish to read this article, kindly contact our Customer Service team at 1-300-88-7827. Thank you for your patience - we're bringing you a new and improved experience soon!
What do you think of this article?