British American Tobacco (BAT) has announced plans to cut 5,500 jobs worldwide and outsource another 3,500 roles as part of a major restructuring aimed at reducing costs and reshaping its business.
In a statement on Monday, the maker of Lucky Strike and Dunhill cigarettes said the overhaul is expected to generate annual savings of £600 million ($792 million) by 2028. The restructuring will affect about 20 percent of the company’s global workforce of 47,000 employees.
The job cuts will apply across BAT’s international operations, excluding the United States, where its business is managed through subsidiary Reynolds American.
Chief Executive Tadeu Marroco said the company is repositioning itself to meet changing market demands as consumers move away from traditional cigarettes toward alternatives such as vaping products and oral nicotine pouches.
“We are building a future-ready organisation that is more agile, cost disciplined and technology enabled,” Marroco said, adding that the company is committed to supporting affected employees throughout the transition.
BAT’s announcement comes as major tobacco companies continue to adapt to declining cigarette sales by investing in reduced-risk nicotine products and improving operational efficiency.
Following the announcement, BAT shares fell 1.5 percent on the London Stock Exchange. AJ Bell Investment Director Russ Mould said the restructuring reflects a broader trend of companies using technology to streamline operations, while warning that the scale of the layoffs highlights growing concerns about the global labour market.
