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British American Tobacco on Thursday said it planned to cut 2,300 jobs globally by January as its new boss seeks to drive revenues in controversial e-cigarettes. "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," chief executive Jack Bowles said in a statement.

"This is a vital first move," added the BAT veteran, who became CEO in April.

Bowles' announcement comes one day after US President Donald Trump's administration said it would soon ban flavoured e-cigarette products to stem a rising tide of youth users following a spate of vaping-linked deaths.

Companies such as BAT are lighting up strong revenue streams from e-cigarettes in the face of falling demand for traditional tobacco products, especially in Western markets, where high taxes, public smoking bans and health worries have persuaded consumers to turn to controversial alternatives.

Bowles said the jobs cuts, of which more than 20 percent will be senior roles, would see BAT "better placed" to deliver £5.0 billion ($6.2 billion, 5.6 billion euros) in new category revenues by 2024.

"A programme of this significance involves decisions that will be difficult for our people, but ultimately it is the right thing for our business," said Bowles, whose company makes traditional cigarette brands Dunhill and Lucky Strike.

Copyright Agence France-Presse, 2019


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