British American Tobacco to Restructure Workforce, Impacting Around 9,000 Roles

British American Tobacco Announces Major Workforce Restructuring

British American Tobacco (BAT) has unveiled a large-scale restructuring plan that will affect around 9,000 positions worldwide as the company works to reduce costs and modernize its operations with greater use of artificial intelligence.

The plan includes approximately 5,500 direct job reductions and the transfer of nearly 3,500 positions to external service providers, including Accenture. The changes do not cover the United States, which remains BAT's largest market.

The company expects the restructuring to generate an additional £600 million in annual savings by 2028, with £500 million of those savings targeted by 2027. BAT has not disclosed which countries or regions will see the job reductions.

Following the announcement, BAT shares fell around 2%, underperforming the broader FTSE 100 index. Analysts said the scale of the workforce changes was greater than many had anticipated after the company previously indicated that efficiency measures could result in job cuts.

Chief Executive Tadeu Marroco said the restructuring is designed to create a more agile, technology-focused and cost-efficient business. He added that the company is committed to supporting employees affected by the transition.

BAT continues to shift its focus from traditional tobacco products toward alternatives such as Vuse vaping devices and Velo nicotine pouches. The company has also been streamlining its manufacturing operations over the past two years, including a previously announced factory closure in South Africa.

The tobacco maker expects global sales volumes for conventional tobacco products to decline by 2.5% this year. It also cited regulatory delays for new products in the United States, growing competition from illegal vape imports, higher duties, tighter regulations and pressure on consumer spending in several markets.

BAT said most affected employees have already been informed, while consultations continue where required under local employment regulations.