12th Sep 2019 07:18
(Alliance News) - British American Tobacco PLC said Thursday it has initiated a programme to simplify its business, in order to deliver savings to be reinvested in growing its product portfolio.
The programme includes the reduction of management layers, the creation of fewer, larger and more accountable business units, and the better leverage of its Global Business Services activities.
The programme is expected to be completed by January 2020, and is expected to lead to a reduction of 2,300 roles globally.
Due to the removal of management layers, the London and Johannesburg-listed tobacco firm expects over 20% of senior roles in the group to be affected. A consultation process is underway with all staff that will be affected.
"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," said Chief Executive Jack Bowles.
"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 GBP5 billion of revenues in New Categories by 2023/24," Bowles added.
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