By Timothy S. Donahue
Top Takeaways:
- Restructuring underway: Scandinavian Tobacco Group confirmed that 54 positions are being eliminated, including 47 layoffs, mostly in Europe.
- Focus2030 savings: The cuts align with a five-year plan targeting DKK 200 million ($29 million) in operating cost reductions.
- Operational shift: Some responsibilities related to handmade cigar operations are expected to shift from European teams to U.S. operations.
Scandinavian Tobacco Group is cutting 54 jobs — including 47 layoffs — as part of a broader restructuring effort related to its Focus2030 strategy, the company confirmed to French cigar publication, L’Amateur de Cigare.
The cuts, which started in February, mainly impact European operations linked to the company’s handcrafted cigar division. Responsibilities for those roles will gradually shift to Scandinavian Tobacco Group’s U.S. teams, according to internal sources cited by the publication.
The Copenhagen-listed company, whose portfolio includes cigar brands such as Macanudo, CAO, and Silencio, said the job reductions are part of efforts to strengthen the business over the long term.
In a statement provided to L’Amateur, STG said it first eliminated open positions before moving forward with redundancies.
The company confirmed the removal of “54 positions,” including 47 layoffs, noting that “the majority [are] in Europe.” Seven of the eliminated roles were vacant at the time.
According to sources familiar with the restructuring, the layoffs impact several European markets, including Denmark — where STG is based — as well as Belgium and the Netherlands.
The move aligns with the company’s Focus2030 strategy unveiled in November. The five-year plan aims to reduce operating expenses by approximately DKK 200 million (US$29 million) as STG seeks to optimize operations and focus on growth segments.
STG declined to provide further detail on which employees or countries are affected, citing ongoing consultation requirements with labor representatives.
“We aim to be as transparent as possible, while following all practices regarding consultations and information with local Workers’ Councils,” the company said.
The restructuring occurs ahead of the company’s annual results announcement. Scandinavian Tobacco Group, which employs approximately 10,000 people worldwide, reported revenue of DKK 9.2 billion and net profit of DKK 940 million in 2024.
