BAT to Cut 5,500 Jobs as It Accelerates AI-Led Restructuring

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London: British American Tobacco (BAT) will cut 5,500 jobs worldwide and outsource another 3,500 roles as part of a major restructuring aimed at reducing costs and making the company more digital and AI-focused.

The tobacco giant, which employs around 47,000 people globally, expects the overhaul to save about £600 million annually by 2028. The company said the job cuts have already begun and are expected to be completed by the end of this year. It did not disclose which countries would be affected but confirmed that its US operations would not face layoffs.

BAT is restructuring as demand for traditional cigarettes continues to decline, with more consumers switching to alternatives such as vapes and nicotine pouches. The company has been expanding products including Vuse vapes and Velo nicotine pouches, although growth in the segment has been slower than expected.

The company has also faced pressure from weaker sales in the US, rising taxes, tighter regulations and delays in approvals for new vaping products. BAT said these factors have also contributed to the growth of illegal vape products in the market.

Chief Executive Tadeu Marroco said the restructuring would make the company more agile, technology-enabled and cost-efficient, while pledging support for employees affected by the changes.