British American Tobacco to Cut 9,000 Jobs in AI-Driven Restructuring
The tobacco giant aims to become more agile and cost-disciplined by leveraging artificial intelligence and outsourcing.
British American Tobacco (BAT) announced plans to eliminate approximately 9,000 jobs, representing nearly a fifth of its global workforce, as part of a significant cost-cutting and transformation initiative.
The company intends to cut 5,500 roles directly and outsource an additional 3,500 jobs to partner businesses. These changes, which have already begun, are expected to be completed by the end of the current year. BAT currently employs 47,000 people worldwide.
Focus on AI and Efficiency
BAT stated that the job reductions are a component of its 'Fit2Win' program, launched last year, and its broader 'transformation programme.' These efforts are aimed at bolstering the company's use of artificial intelligence to become more 'technology enabled' and streamline operations. The program is projected to generate annual cost savings of approximately £600 million by the end of 2028.
Chief Executive Tadeu Marroco described the initiative as building a 'future-ready organisation that is more agile, cost disciplined and technology enabled.' He added that the company is creating a 'simpler, faster BAT' through strategic partnerships and a more focused operational footprint.
In February, the company had announced an AI-driven productivity program alongside its annual results. At that time, interim finance chief Javed Iqbal indicated that the program would streamline operations through increased automation of routine tasks using data analytics and AI tools, noting that these simplification efforts would impact staffing levels.
Industry Pressures
The restructuring comes as BAT, a London-headquartered and listed company, faces declining demand for traditional cigarettes. Smokers are increasingly shifting towards alternatives like vapes and nicotine pouches, creating pressure for the company to invest in these newer product categories.
BAT confirmed it has partnered with technology consultancy Accenture since 2025 to outsource some of its work. Certain jobs in the UK, Poland, Romania, Costa Rica, Mexico, Singapore, and Malaysia have been transferred to Accenture. The company has also expanded its partnership with ITC Infotech, transferring Information, Digital, and Technology roles in Poland and Romania to the firm.
While BAT did not provide country-specific details on job losses, it confirmed that its operations in the United States, which operate under its subsidiary Reynolds American, will not be affected by these cuts. The exact number of staff impacted in the UK remains unclear.
Other Strategic Moves
In January, BAT announced the closure of its South African factory, its eighth largest, citing competition from illicit trade as the primary reason. The company reaffirmed that the market for illicit products had become unsustainable.
BAT reported a profit of £10 billion and £6.3 billion in cash flow in its annual results in February. As of Monday, June 29, 2026, BAT shares were down 1.49%.