British American Tobacco (BAT) has presented a broad internal transformation plan that will involve the reduction of 9,000 jobs across the group, combining direct layoffs and the outsourcing of certain functions to third parties in order to cut costs.
In detail, the tobacco multinational plans the definitive elimination of 5,500 jobs, while another 3,500 will be managed by specialized "strategic partners," within a global restructuring that, for now, excludes the US market.
"BAT is committed to managing this reorganization responsibly and carefully. As previously announced, Fit2Win (the name of the reorganization plan) involves a reduction in jobs across the group, as it simplifies structures and transfers work to its key strategic partners. These changes do not affect the United States, which is not included in the scope of the reorganization," the cigarette manufacturer indicated in a statement.
The company has already communicated most of these measures to its workforce, which also include the closure of its production plant located in the South African city of Heidelberg, a decision that the company attributes "to the unsustainable level of illicit products that currently dominate the market."
With this reconfiguration, BAT aims to adjust its cost structure and achieve recurring savings of 600 million pounds per year (around 700 million euros), with the intention of making the multinational an "agile, disciplined, and innovative" organization.
"These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we prepare the company for the future," said BAT CEO Tadeu Marroco. "We are building a future-ready organization, more agile, with more rigorous cost management and technological support," he added.
Through this transformation program, the tobacco company aims to strengthen its competitive position and orient the group towards long-term sustainable growth, relying on collaborations with firms such as Accenture and other strategic agreements signed in recent months.
"Whether through strategic alliances or a more focused operational presence, we are creating a simpler and faster BAT. These measures are already bearing fruit, from greater operational efficiency to faster decision-making and greater alignment across all group markets," Marroco concluded.