Altria Centralizing Operations In $600M Cost-Savings Initiative
Altria Group launched a cost-savings initiative to improve organizational speed and agility through the use of artificial intelligence and other automation.
Known as Optimize & Accelerate, the multi-phase plan will centralize, streamline, and standardize processes for the consumer goods company over the course of 12-18 months. The company expects the initial phase will deliver at least $600 million in savings over the next five years.
As part of this, they’re establishing an Accelerated Business Solutions organization within the company, which will be responsible for driving efficiency and processes through the enterprise.
In addition to further leveraging AI and automation, the initiative focuses on outsourcing some “transactional” tasks.
Smoke-Free Future
Altria acquired e-cigarette manufacturer NJoy last year and reported encouragement by its performance in the earnings call. Optimize & Accelerate is part of Altria’s larger smoke-free strategy, of which the formation of a centralized business solutions organization will be a key component, according to Altria CEO Billy Gifford.
Through optimizing processes and making better use of technology and external partners, they expect to free up both employee time and more financial resources.
“By evolving our ways of working, implementing new technology and better leveraging external partners, we can drive further progress toward our vision and position ourselves for long-term sustainable growth in this dynamic environment,” said Gifford.
