Imperial Tobacco today said its e-cigarette brand Blu is to close its Edinburgh site next month, putting 55 jobs at risk.
The firm said the decision follows the introduction of a new global operating model designed to secure the long-term success of its Fontem Ventures subsidiary by transferring operations to the Netherlands the US.
Bart Maas, general manager of Fontem Ventures, said: “We deeply regret that this strategic restructuring will result in redundancies among our 55 employees in Edinburgh.
“We appreciate the commitment, achievements and contribution of all our employees in Edinburgh and will be conducting full consultations with impacted individuals, offering them assistance to find employment either within the existing business or elsewhere.”
Imperial took control of the Blu business – previously called Skycig – when it acquired a raft of brands from US tobacco rival Lorillard earlier this year.
Blu’s operations in Edinburgh will cease over a phased period starting 30 September and ending on 30 December.
Imperial Tobacco will be taking over sales and warehouse activities and said: “As such, we do not expect this announcement to have any impact on our customers.”