LONDON — British American Tobacco (BAT) said it will cut about 5,500 jobs globally as part of a restructuring programme aimed at reducing costs and accelerating an artificial intelligence-driven transformation, with a further 3,500 roles expected to move to strategic partners.
The London-listed tobacco company said the changes would affect around 9,000 positions in total, representing a significant portion of its global workforce, but the restructuring would exclude its U.S. operations, its largest market. BAT said most of the role changes had already been confirmed with employees, while remaining consultations were being carried out in line with local requirements.
The company said the programme is expected to deliver about £600 million ($793 million) in additional annualised savings by 2028, with around £500 million targeted by 2027. BAT said the restructuring is part of efforts to create a more streamlined operating model as it invests in technology and automation.
Chief Executive Tadeu Marroco said the company was focused on supporting employees affected by the changes while reshaping the business. “These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect,” Marroco said in a statement.
BAT, which owns brands including Lucky Strike and Dunhill, has been shifting its focus toward so-called new categories such as vaping products and nicotine pouches as demand for traditional cigarettes declines in many markets. The company has said the restructuring will help it become more technology-focused and improve operational efficiency.
The job reductions come as tobacco companies face regulatory pressures, changing consumer behaviour and challenges in expanding alternative nicotine products. BAT has previously highlighted its strategy of growing reduced-risk product categories, including brands such as Vuse and Velo, while managing declines in combustible tobacco volumes.
The company said the workforce changes form part of its broader Fit2Win transformation programme, which is designed to simplify operations and improve productivity. Roles affected include positions across several international locations, while BAT said the United States was not included in the current restructuring.
BAT’s shares fell after the announcement as investors assessed the scale of the restructuring and the company’s cost-saving plans. The company has not announced further changes beyond the current programme and said remaining employee consultations would continue according to local regulations.
