The British American Tobacco (BAT) has announced the layoffs of major workers around the world. The company will lay off five and a half thousand employees to reduce costs and change the business. In a statement on Monday, three thousand more and a half thousand posts will be taken under outsourcing as part of the cost reduction, a statement from the BAT headquarters in London said on Monday.
The company, the maker of Lucky Strike and Dunhill Cigarettes, said it aims to save around Rs 720 crore (£60million) a year by 2028 as part of its restructuring plan. This will affect about twenty-seven percent of the company’s total workforce. However, their subsidiary in the United States, “Reynolds American”, will remain out of the slaying process.
BAT is now focusing more on veps (e-cigarettes) and other modern products as the demand for traditional or common cigarettes in the global market is decreasing day by day. BAT chief executive Tadeau Maroko said they want to build a future market-friendly, dynamic and technology-based company. He assured that the necessary support and respect will be given to the workers who have lost their jobs.
Meanwhile, after the big announcement, the share price of BAT in the London Stock Exchange fell by about 1.5 percent. While this trend of reducing costs by increasing technology is normal for business modernization, this is a very worrying news for the current global labour market, although this is a very worrying news for the current global labor market.