British American Tobacco (BAT) announced a restructuring on Monday to eliminate or outsource 9,000 roles. This reduction represents approximately 20% of the company's global workforce. The plan involves cutting 5,500 jobs and moving 3,500 positions to third-party firms.
BAT is implementing an AI-driven transformation program to simplify operations. The company expects this initiative to generate £600 million in annualized savings by 2028.
Management intends to reinvest these savings into non-combustible product lines. The strategy prioritizes the growth of vapes and nicotine pouches over traditional cigarettes.