British American Tobacco said it will eliminate 5,500 roles and outsource another 3,500 this year—affecting 9,000 positions, or roughly a fifth of its workforce—as part of a multiyear overhaul to cut costs and accelerate a shift toward technology and smoke-free products. The FTSE 100 group expects the “transformation programme” to generate about £600 million in annual savings by the end of 2028. CEO Tadeu Marroco said BAT is becoming “more agile, cost disciplined and technology enabled,” building on a partnership with Accenture that has moved some roles to the consultancy and expanded access to advanced AI tools.
The move comes as global cigarette volumes are forecast to fall about 2.5% this year and BAT continues to pare back traditional manufacturing, including the recent closure of a South African plant amid illicit-trade pressures. The company is investing in newer categories such as Vuse e-cigarettes and Velo nicotine pouches, where it expects mid-teens revenue growth this year. BAT said there will be no workforce cuts at its U.S. unit, Reynolds American. Shares slipped about 1.4% in early London trading, while rival Imperial Brands fell about 1%.
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