Imperial Tobacco to cut 2,400 jobs as it integrates Altadis's operations

23 June 2008

Imperial Tobacco Group PLC has announced a number of restructuring projects in Europe, which it proposes to implement progressively over the next three years as part of the integration of the European tobacoo products maker Altadis, which it acquired in January with its own operations.

As a result of this acquisition acquisition Imperial Tobacco has consolidated its position as the world's fourth largest international tobacco company. The Group manufactures and sells a comprehensive range of cigarettes, tobaccos, rolling papers and cigars in more than 160 countries worldwide and currently has around 40,000 employees and 58 manufacturing sites.

Western Europe's third largest cigarette manufacturer, Altadis is a multinational manufacturer of cigarettes, tobacco and cigars. It was formed in 1999 through the merger of Tabacalera, the former Spanish tobacco monopoly and SEITA, the former French tobacco monopoly.

As a result of the integration process, Imperial Tobacco will restructure the operations leading to plant closures as manufacturing of some products is transferred to other locations. The mergeed group employs around 40,000 people worldwide of which about 2,440 jobs face being eliminated as the group proposes to close six factories within its global portfolio of 58 manufacturing facilities and reorganise operations at a number of sites.

Imperial Tobacco said that the restructuring affects sales and marketing, manufacturing and central support functions including human resources, finance and corporate affairs in a number of markets, required to "strengthen the enlarged Group's competitive position in a challenging and highly regulated operating environment by addressing over-capacity and improving efficiencies."

It said there would be no impact on the logistics business.