After forecasting an unexpected drop in profits this year, Japan Tobacco said on Tuesday it plans to cut about 1000 jobs and focus on winning market share for non combustible (HNB) products such as ploom s.
According to refinitiv, operating profit is expected to decline 23% to 363 billion yen (about 3.46 billion US dollars) in 2021, while the market is expected to recover slightly to 476 billion yen. Although JT occupies more than half of the domestic cigarette market, JT lags behind its competitor Philip Morris in the increasingly popular HNB product category.
The company said it plans to cut about 1000 jobs and offer voluntary and early retirement plans as traditional cigarette sales decline. At the same time, it said it would step up investment in so-called risk reduction products, including the non flaming ploom, which competes with Philip Morris's iqos.
It plans to launch a new electric heating rod product later this year to enhance its position in Japan. Japan is the world's largest market for such products, banning the use of nicotine containing electronic liquid ordinary e-cigarettes.
Masamichi terabatake, President and chief executive officer of JT group, said in a press release that Japan's harm reduction category is the most mature and competitive category in the world. Reflecting this and the decline in sales in recent years We have to make some difficult and necessary decisions.