The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Tobacco Products Manufacture Of Tobacco Products 12.0 - Manufacture of tobacco products
New offshoring locations
Poland, Hungary, Romania, Croatia
950 jobs Number of planned job losses
Announcement Date
14 July 2016
Employment effect (start)
14 July 2016
Foreseen end date
31 December 2017
Description
One of the world's leading tobacco companies, British American Tobacco (BAT), announced plans to cut 950 jobs at its site in Bayreuth by the end of 2017. The site specialises in the production of ready-made cigarettes and semi-finished goods. Job cuts are due to the transfer of the production to Poland, Hungary, Rumania and Croatia. According to the company, this measure has become necessary due to immense high production costs in Germany, declining tobacco consumption throughout Europe, government regulations and numerous tax increases. However, Germany will continue to be a major market for BAT in Europe. The company wants to sell or scrap the machines of the plant. The Bayreuth region reacts with millions worth an investment package to absorb the job losses and to ensure economic stability as BAT is the largest employer of the city. Out of the current 1,400 positions only 370 will remain in the city of Bayreuth.
British American Tobacco, headquartered in London, currently employs around 2,000 employees in Germany. Â
Sources
14 July 2016: BR online
14 July 2016: Die Welt (online)
15 July 2016: Süddeutsche (online)
Citation
Eurofound (2016), British American Tobacco (BAT), Offshoring/Delocalisation in Germany, factsheet number 88190, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/88190.
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