The UK’s largest listed cigarettes manufacturer British American Tobacco (BATS) saw its share price rally 1.5% to £30.87 after unveiling plans to simply the business and boost growth in its portfolio of new categories, such as vapour, tobacco heating products and oral tobacco.
The streamlining programme will also see around 2,300 workers laid-off in a move that will cut more than a fifth of senior roles in the company.
‘The programme, which is planned to be substantially complete by January 2020, envisage a reduction of around 2,300 roles globally,’ the company said. ‘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.’
LARGER AND FEWER UNITS
As part of an efforts to reduce management layers, the company said it would create fewer larger more accountable business units; better leverage its global business services activities; and simplify all key business processes and ‘ways of working’.
‘As a result, BAT will be better placed to deliver on our target of generating £5bn of revenues in New Categories by 2023/24,’ the company said.
British Americabn Tobacco is currently valued at £70.8bn, significantly more than its UK listed rival Imperial Brands (IMB). It is worth just over £21bn.