JT To reduce 2,400 overseas subsidiaries October 31 20:25
JT = Japan Tobacco Inc. has decided to reduce the number of employees to approximately 2,400 people working in administrative departments such as accounting, in order to streamline the management of subsidiaries engaged in overseas business.
This was clarified by JT at the financial results conference on the 31st.
According to this, in order to streamline the management of the overseas subsidiary “JT International”, the offices of accounting departments such as accounting and finance at each overseas base will be consolidated into the Philippines, Poland, and Russia. doing.
Along with that, by FY2022, out of approximately 45,000 employees, about 2400 people working in the management department will be reduced.
JT is the third largest tobacco manufacturer in the world, but demand is expected to shrink due to increased health-consciousness and increased sales regulations mainly in developed countries such as Europe.
JT expects a cost reduction effect of over $ 200 million annually in three years, and is hoping to streamline operations and strengthen profitability, while the future of the tobacco market is uncertain.