British American Tobacco (BAT) is laying off 2,300 employees globally, including a fifth of senior roles, as part of moves to restructure its business to adjust to changes in the industry.
The company described the decision as an “important step” in a programme to simplify its business and create a more “efficient, agile and focused BAT”.
It added: “This will ensure the company is better placed to meet ever evolving consumer needs and deliver savings that can be reinvested in the growth of its portfolio of new categories such as vapour, tobacco heating products and oral tobacco.”
A consultation process is now underway with affected staff and BAT hopes to complete the restructuring by January next year.
The shake-up comes just five months after Jack Bowles took over as Chief Executive and is part of his plan to make the group more nimble and focus on newer products as the traditional cigarette market declines. BAT is targeting revenues of £5bn from ‘New Categories’ by 2023/24.
Bowles said: “Since taking on the role of Chief Executive five months ago, I have been clear that I wanted to make BAT a stronger, simpler and faster organisation and ensure a future fit culture. My goal is to oversee a step change in New Category growth and significantly simplify our current ways of working and business processes, whilst delivering long-term sustainable returns for our shareholders. This is a vital first move to help achieve these goals.”
