BAT transformation programme impacts 9,000 roles in efficiency drive
British American Tobacco PLC on Monday said its Fit2Win transformation programme is on track, impacting around 9,000 roles globally as it advances cost cutting efforts.
The London-based cigarette and nicotine product maker said the programme, which was launched last year and aims to make the company more agile, cost disciplined and innovative, remains on target to achieve around £600 million in annual cost savings by 2028.
As part of the efficiency drive, BAT said it expects changes to result in a reduction of around 5,500 roles globally by the end of the year, excluding the US, which it noted is not within the scope of the programme.
BAT added that around 3,500 roles have also been moved to strategic partners.
The company explained that strategic partnerships with world-leading technology and business services companies are central to the programme, noting its partnership in July last year with Dublin-based information technology and management consulting company, Accenture PLC.
BAT explained that through this partnership, certain roles across its Global Service Hubs in Costa Rica, Mexico, Poland, Romania and Malaysia, as well as Supply Network Operations in the UK and Singapore have transitioned to Accenture.
The company noted some roles in Pakistan have transitioned to Lahore-based Systems Ltd, a technology and business services company.
Further, BAT explained that relevant Information, Digital and Technology roles in Poland and Romania have been moved to Bengaluru, India-based ITC Infotech under their expanded partnership.
BAT added that its factory network has been consolidated over the past 18 to 24 months, as part of a wider review of its manufacturing footprint.
The company said most changes have been confirmed with employees, with remaining consultations being carried out in line with local information and consultation requirements.
Shares in BAT were down 1.6% at 4,676.00 pence on Monday morning in London. In Johannesburg, they were 1.3% lower at ZAR1,015.40.
Chief Executive Tadeu Marroco said: "We are building a future-ready organisation that is more agile, cost disciplined and technology enabled."
"These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we position the business for the future," the CEO added.
The company said its actions are already delivering, from "improved operational efficiencies to faster decision-making and increased alignment" across its end markets.
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