Key facts
- British American Tobacco will cut 5,500 jobs and outsource 3,500 roles, affecting 9,000 employees.
- The job cuts represent approximately 20% of BAT's 47,000 global workforce.
- The restructuring is driven by artificial intelligence and aims to reduce costs and increase agility.
- The company expects to achieve £600 million in annual cost savings by 2028.
- Job reductions will not affect positions in the United States.
- BAT is increasing investment in smoke-free products amid falling demand for traditional cigarettes.
British American Tobacco (BAT) is implementing a significant restructuring that will result in 5,500 job cuts and the outsourcing of 3,500 roles, affecting a total of 9,000 employees, or approximately 20% of its global workforce. This AI-driven transformation aims to reduce complexity, cut costs, and increase agility as the company faces declining demand for traditional tobacco products. BAT anticipates saving around £600 million annually by 2028. The company has formed strategic partnerships with technology and business services firms to facilitate these changes. Jobs have already been moved to these partners in various locations. Chief Executive Tadeu Marroco emphasized support for affected employees during this transition. The job reductions will not impact operations in the United States. BAT is also increasing investment in smoke-free products amid a predicted fall in global cigarette volumes.