Imperial Cuts 2,500 From Global Workforce As It Absorbs Altadis
Tobacco company announces closure of six factories, with redundancies in France, Spain and the UK
Imperial Tobacco announced yesterday that it was cutting its global workforce by about 2,500 over the next three years, including up to 285 jobs in Britain.
The group said the cuts were part of the integration of Altadis, the Franco-Spanish tobacco company, for which Imperial paid €16.2bn (£12.7bn) including debtin January.
The rationalization program will mean the closure of six of the company's 58 factories, including one in the UK. Imperial said it was closing its cigar plant in Bristol, with production being transferred to Cantabria in Spain, leading to the loss of all 75 jobs.
A further 210 jobs will go at Imperial's cigarette factory in Nottingham, which employs more than 800 people.
Imperial said the job losses in Nottingham would follow the transfer of production of some of the brands made for export to other factories within the group. Production of market-leading brands in Britain, such as Lambert & Butler and Richmond, would not be affected, a spokesman said.
The company said the reorganization would lead to the creation of another 25 jobs at its Bristol headquarters. "We have been clear since day one [of the bid for Altadis] that the corporate headquarters would remain in Bristol," an Imperial spokesman said.
The main bulk of the job losses among Imperial's global workforce of 40,000 will come in France and Spain. Two factories in France - at Strasbourg and Metz - will close, with the company's French workforce of 4,700 shrinking by 1,060. In Spain, the Alicante factory, which produces dark tobacco cigarettes, will close, leading to the loss of 830 jobs from a total workforce of 6,700.
Elsewhere, 250 jobs will be lost in Germany, where production will be switched from Berlin to a more modern facility in Langenhagen, and 100 in Russia.
Imperial is closing a factory in Slovakia, which coupled with the integration of sales and marketing operations in Belgium, Italy and Ukraine will see another 140 jobs lost. However, Imperial's Polish workforce will rise by 200.
The company said the rationalization would cost about €600m but was expected to generate annual savings of €300m by the autumn of 2010, rising to €400m a year over the following two years.
Imperial's chief executive, Gareth Davis, said: "The projects are a necessary step in the process of integrating Imperial Tobacco and Altadis, and will ensure that we create a strong and sustainable future for the enlarged group.
"Any announcement that involves job losses is regrettable and our immediate focus is on supporting our employees."
The group said the cuts were part of the integration of Altadis, the Franco-Spanish tobacco company, for which Imperial paid €16.2bn (£12.7bn) including debtin January.
The rationalization program will mean the closure of six of the company's 58 factories, including one in the UK. Imperial said it was closing its cigar plant in Bristol, with production being transferred to Cantabria in Spain, leading to the loss of all 75 jobs.
A further 210 jobs will go at Imperial's cigarette factory in Nottingham, which employs more than 800 people.
Imperial said the job losses in Nottingham would follow the transfer of production of some of the brands made for export to other factories within the group. Production of market-leading brands in Britain, such as Lambert & Butler and Richmond, would not be affected, a spokesman said.
The company said the reorganization would lead to the creation of another 25 jobs at its Bristol headquarters. "We have been clear since day one [of the bid for Altadis] that the corporate headquarters would remain in Bristol," an Imperial spokesman said.
The main bulk of the job losses among Imperial's global workforce of 40,000 will come in France and Spain. Two factories in France - at Strasbourg and Metz - will close, with the company's French workforce of 4,700 shrinking by 1,060. In Spain, the Alicante factory, which produces dark tobacco cigarettes, will close, leading to the loss of 830 jobs from a total workforce of 6,700.
Elsewhere, 250 jobs will be lost in Germany, where production will be switched from Berlin to a more modern facility in Langenhagen, and 100 in Russia.
Imperial is closing a factory in Slovakia, which coupled with the integration of sales and marketing operations in Belgium, Italy and Ukraine will see another 140 jobs lost. However, Imperial's Polish workforce will rise by 200.
The company said the rationalization would cost about €600m but was expected to generate annual savings of €300m by the autumn of 2010, rising to €400m a year over the following two years.
Imperial's chief executive, Gareth Davis, said: "The projects are a necessary step in the process of integrating Imperial Tobacco and Altadis, and will ensure that we create a strong and sustainable future for the enlarged group.
"Any announcement that involves job losses is regrettable and our immediate focus is on supporting our employees."
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