British American Tobacco (BAT) said it planned to cut 2,300 jobs globally by January as its new boss seeks to drive revenues in e-cigarettes.
Chief Executive Officer Jack Bowles said in a statement, "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."
The announcement comes one day after US President Donald Trump's administration said it would soon ban flavored e-cigarette products.
With the focus on simplification and removal of management layers, it is expected that over 20% of the senior roles in the organization will be affected.
“A program of this significance involves decisions that will be difficult for our people, but ultimately it is the right thing for our business,” adds Bowles.
As a result, BAT will be better placed to deliver on their target of generating £5 billion of revenues in New Categories by 2023/24, Bowles adds.
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