TOBACCO GROUP PJ Carroll plans to downsize its operation in response to declining sales and an increase in the availability of cigarettes on the black market.
The company declined to comment on the restructuring but it is understood it is seeking up to 10 job losses and wants to outsource 14 sales positions. It employs 62 people in Ireland. Staff were informed of the restructuring at a meeting in its Sandyford, Dublin, office yesterday.
In a statement issued to The Irish Times, the company said: "PJ Carroll has announced proposals to restructure its business. This is in response to a number of trends, not least of all, the growing proportion of the total tobacco market which is now illicit. We believe the illegal market now represents around 30 per cent of all cigarettes consumed in Ireland."
PJ Carroll said it would engage in a 30-day consultation period with staff. "No changes will be made before this process is complete," it added. Staff are represented by Siptu.
Recent accounts show that the company's sales fell by 2.2 per cent to €223.9 million in 2008, with the company selling 85 million fewer cigarettes. A tight control on costs helped it boost its after-tax profit by 36.7 per cent to €9.3 million last year. It paid a dividend of €7.8 million to its parent company British American Tobacco.
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