On Thursday British American Tobacco Plc (BAT) said it would lay off 2,300 workers globally by January, about 4% of its workforce because the world’s second-largest tobacco company by sales directs on more current smoking choices such as e-cigarettes.
More than 20% of its senior roles shall be affected because the maker of Lucky Strike and Dunhill cigarettes excludes duplicate functions and consolidates business units.
BAT employs over 55,000 people, based on its 2018 annual report.
The company has mentioned it’s going to invest in what it calls its “New Category” enterprise beneath CEO Jack Bowles and this year introduced plans to streamline the portfolio.
The division makes tobacco heating products glo and Vype e-cigarettes in addition to snuff and nicotine pouches.
BAT expanded by buying U.S. rival Reynolds American for $49 billion in 2017.
The corporate stated the planned changes would assist the firm ship on its target of generating 5 billion kilos ($6.2 billion) of income in new classes by 2023-24.
By focusing on the three “New Category” manufacturers, Bowles has mentioned BAT would see much less complexity and faster decision making when responding to new trends.
This month, BAT said it would launch two new tobacco heating merchandise in Japan underneath its glo brand. It is also seeking to shut the window with market leader Philip Morris International Inc in the United States’ fast-growing vaping business.
BAT beat first-half sales forecasts last month, helped by higher demand for e-cigarettes, and predicted a stronger performance in the second half because it focuses on a smaller variety of fast-growing manufacturers.