British American Tobacco says it's ending operations in Chile due to law

British American Tobacco says it will close its operations in Chile because of changes to the country's tobacco law.

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The world's No. 2 cigarette maker produces brands like Dunhill, Lucky Strike and Pall Mall. The company calls the toughening of Chile's tobacco law "unconstitutional and arbitrary" in a Thursday statement.

Changes include banning additives like menthol and larger warnings on cigarette packs about the risks of smoking.

British American Tobacco says the modifications approved by Chile's Senate this week would affect its business and hurt a "significant number of farmers and workers" who produce and sell tobacco in the country.

The company says it'll start by reducing 20 percent of its nearly 1,000 employees. It estimates about $400 million could be lost with the menthol ban and warning label changes.