British American Tobacco is to cut or outsource around 9,000 roles globally as part of a major restructuring drive designed to reduce costs and make the business more technology-led.
The FTSE 100 tobacco giant, which owns brands including Lucky Strike, Dunhill, Vuse and Velo, said it would cut around 5,500 jobs and move a further 3,500 roles to strategic partners.
The shake-up forms part of BAT’s Fit2Win transformation programme, which is expected to deliver around £600m in annualised savings by the end of 2028.
The company said the changes would help it simplify operations, improve speed to market and strengthen its digital capabilities as it continues to shift away from traditional cigarettes and towards smoke-free products.
BAT has struck partnerships with technology and business services firms including Accenture, ITC Infotech and Systems Ltd, with some roles across global service hubs and supply network operations moving to external partners.
Roles in countries including Costa Rica, Mexico, Poland, Romania, Malaysia, Pakistan, Singapore and the UK are affected, although BAT has not confirmed how many UK jobs will be impacted.
The company said the restructuring does not include its US business, Reynolds American, which remains its largest market.
BAT chief executive Tadeu Marroco said: “We are building a future-ready organisation that is more agile, cost-disciplined and technology-enabled.
“Fit2Win is central to this ambition, strengthening how we operate and our ability to compete in a rapidly evolving environment.
“These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we position the business for the future.”
The move comes as BAT faces falling demand for traditional cigarettes, tougher regulation and increasing pressure to grow its next-generation nicotine portfolio.
The business has been investing in products including Vuse vapes, Glo heated tobacco and Velo nicotine pouches as it looks to build a larger smoke-free business.
BAT said earlier this month that it remained on track to deliver full-year guidance, supported by growth in its new categories division.
The job cuts also add to growing concern over the impact of AI and automation on white-collar roles, with major businesses increasingly using the technology to streamline operations and reduce costs.
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