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Global tobacco giant British American Tobacco (BAT) has announced that it is cutting almost 20% of its 47,000 strong global workforce as the comapny aims to save about £600 million by 2028. This translates to about 5,500 direct job cuts with another 3,500 jobs expected to be outsourced by the end of this year.
The company is facing challenges with its traditional product range, as younger generations are increasingly preferring vaping over traditional cigarettes. These job cuts are expected to be enforced worldwide except in its US subsidiary Reynolds American, which is also its largest market.
“We are building a future-ready organisation that is more agile, cost disciplined and technology enabled,” BAT’s CEO Tadeu Marroco said.
“These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we position the business for the future,” he added.
These job cuts aren’t the only plan in the company’s restructuring plan. It has, earlier this year, also closed one of its manufacturing plants in South Africa, as the illicit tobacco trade has affected the company in various markets.
For BAT, the decline in traditional cigarettes has been expected, with the company estimating that the decline would be steady over the years, as it looks to focus on vaping and other new age products.
Like many other multinationals, the company is relying on automation, artificial intelligence and data analytics to improve its operational efficiencies. This represents a broader plan where layoffs have become fairly common in the tech world, with employees in other sectors too being affected.
English (US) ·