BAT Belgium, part of the publicly traded cigarette manufacturer British American Tobacco, intends to eliminate 51 of its 87 jobs. Increasing regulations and economic pressure are weighing on results.
“Continued erosion of revenue”
The tobacco company is initiating a collective redundancy procedure that could affect 48 of the 74 employees in the commercial unit and 3 of the 13 people outside it. The exact number of jobs lost will depend on consultations with the social partners. BAT announced the restructuring on Wednesday morning at a special works council meeting.
“BAT Belgium is facing increasing regulation and economic pressure, including the banning of certain nicotine products, the growth of the illegal tobacco market, and significant excise duty increases. These developments are causing a lasting erosion of our turnover and are weighing heavily on BAT Belgium’s results,” says the company, which says it wants to create a more efficient, agile organization.
