Japan Tobacco (JT) will shutter factories and cut 1,600 jobs to remain competitive in a domestic market expected to shrink in coming years, the company said.

Two cigarette factories (Koriyama, Fukushima Prefecture; Hamamatsu, Shizuoka Prefecture) and a printing plant in Okayama will be closed at the end of March, 2015. The leaf processing unit in Hiratsuka, Kanagawa, will be shuttered one year later. The leaf processing operation based in Sukagawa, Fukushima, and vending machine manufacturer in Akashi, Hyogo, will close in March, 2015, the company said. Leaf procurement in Fukushima will continue.
“We believe that adaptability to a changing environment is critical to achieving sustainable profit growth in the mid- to long-term,” said Mitsuomi Koizumi, JT president and chief executive officer.
Twenty-five area branch offices will be consolidated into 15 regional sales centres as of April, 2015, as part of a transition to a more agile sales operation, JT said.
JT workers will be offered voluntary retirement packages to reduce the workforce, with most expected to leave the company in March, 2015, and the remainder 12 months later.