British American Tobacco PLC (LSE:BATS) (BAT) said it has decided to streamline its operations, cutting the number of business units and restructuring its regional set-up.
Under the plans, the number of regions will be reduced from four to three, and the number of business units from 16 to 12, the FTSE 100 cigarette seller said.
The three new regions will be USA (Reynolds American Inc), Americas & Europe (AME), and Asia Pacific, Middle East & Africa (APMEA).
“The new structure will increase the efficiency of BAT's geographical footprint, optimise market prioritisation and will be based on fewer, larger business units, enabling even greater collaboration and accelerated decision-making across BAT,” the company said.
In a statement, Jack Bowles, BAT chief executive said the changes “will drive increased focus, accelerate our transformation and fuel growth as we strengthen the foundations of our future as a category-led enterprise."
Two new board roles will be created in order to ensure clarity of ownership, accountability and focus: chief transformation officer and director, Combustibles, BAT noted.