Increased losses over the past two years have forced the British American Tobacco Uganda (BATU), to cut jobs of more than 130 workers.
BATU's head of corporate affairs, Simon Kaheru, says the job cuts is part of the company's restructuring process. He says BATU plans to reposition itself as a more efficient and profitable company.
Kaheru says the tobacco company has recently suffered billions of shillings in losses because of competition and the poor quality of tobacco produced by the farmers. He says
BATU's operational costs have been far much higher than returns on tobacco exports, prompting the job cuts to reduce the costs.
Workers at the west Nile tobacco leaf company have been hit hard by the job cuts. The West Nile Leaf Operations Manager, Francis Bhatia, has also been rendered redundant.
Kaheru says the affected workers will be paid their severance packages in July next year.