British American Tobacco (BTI) - Get Report says it will cut about 4% of its global workforce to cut costs and adapt to what it describes as "ever-evolving consumer needs," including growth in new categories such as vaping.
BAT says it will cut about 2,300 roles in its 55,000-employee workforce globally. The cuts, expected to be done by year-end, will focus on the" simplification and removal of management layers," the company said in a statement.
London-based BAT said more than 20% of the senior roles in the company 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," CEO Jack Bowles in the release.
He said his goal is to make BAT "a stronger, simpler and faster organization and ensure a future-fit culture."
BAT said the cuts will "ensure the company is better placed to meet ever-evolving consumer needs and deliver savings that can be reinvested in the growth of its portfolio of new categories such as vapour, tobacco heating products and oral tobacco."
Bowles said the company is positioning itself to deliver on a target of generating £5 billion of revenue (about US$6.2 billion) in new categories by 2023-2024.
The announcement comes a day after President Donald Trump announced that his administration was considering a ban on flavored e-cigarettes amid an outbreak of a mysterious lung disease.
British American Tobacco shares are trading up 0.6% at $37.92.