British American Tobacco announced more than 1,000 job cuts in Britain and Canada today as it reins in costs to reduce the impact of a US price war.
BAT said 490 jobs would go in Britain and 840 jobs at its Imperial Tobacco Canada unit. The cuts follow some 430 job losses announced last month by rival tobacco firm Gallaher.
BAT, which currently employs some 85,000 staff, has been hurt by a cigarette price war in the United States that has hit profits in that market.
It said the restructuring in Britain and Canada would lead to an exceptional charge of around £320 million in the first half of 2003. BAT also said it expected annual cost savings of around £65 million from 2005.
BAT said that while it regretted the job losses, it was committed to "improving productivity in order to strengthen our competitive position in the world, deliver profit growth, and ensure the continued long-term success of the group."
BAT shares were up 0.3 per cent at 646 pence in early afternoon trade. The stock has performed broadly in line with the benchmark FTSE 100 index since the start of 2003.