Tobacco giant British American Tobacco (BAT) will cut 2300 jobs worldwide by the end of the year.
A BAT spokeswoman said that no announcements are currently being made about the local impact of the reorganization.
The smoking industry has seen its income from cigarettes in established markets decline for some time. Competition is also becoming stronger. In addition, the regulations for alternative products, particularly in the United States, are being tightened. For example, President Donald Trump wants to take stricter action against smoke products with added flavorings, because they are linked to health problems.
Investing in smoke alternatives
With the cost saving, BAT wants to free up money for investments in smoke alternatives such as the popular ‘vapes’, where a nicotine-containing liquid is evaporated, with or without a taste. In the period 2023/2024, BAT is aiming at a turnover of 5 billion pounds of new smoke products, equivalent to 5.6 billion euros.
The reorganization is part of a program to simplify the company. This mainly involves pruning in the management. It is expected that one fifth of the higher positions will be affected by the reorganization. Last year 55,000 people worldwide were permanently employed by the company. The total number of employees was even higher.