Tobacco giant British American Tobacco plans to cut 2,300 roles in the group in a bid to simplify its business. See its full stock exchange news service statement below.
British American Tobacco p.l.c. announces an important step in a programme to simplify its business and create a more efficient, agile and focused BAT. 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. To enable better focus on key growth areas; faster decision making; greater management accountability and the elimination of duplicative activities, the proposals will: - reduce management layers; - create fewer larger more accountable business units; - better leverage its Global Business Services activities; and - simplify all key business processes and “ways of working.” The programme, which is planned to be substantially complete by January 2020, envisages a reduction of around 2,300 roles globally. With the focus on simplification and removal of management layers, it is expected that over 20% of the senior roles in the organisation will be affected. A consultation process is now underway with all staff who will be impacted. Jack Bowles, Chief Executive 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. A programme of this significance involves decisions that will be difficult for our people, but ultimately it is the right thing for our business. As a result, BAT will be better placed to deliver on our target of generating £5 billion of revenues in New Categories by 2023/24.”