British American Tobacco to cut 9,000 jobs in £600 million AI-driven overhaul

By the Editorial Team · Tuesday, June 30, 2026

British American Tobacco announced it will cut around 9,000 jobs globally by the end of 2026 as part of a £600 million cost-cutting and restructuring plan focused on improving efficiency and technology use. This move aims to generate substantial annual savings by 2028 and strengthen BAT's ability to navigate regulatory challenges and the shift toward alternative nicotine products.

British American Tobacco (BAT) announced plans to reduce its global workforce by approximately 9,000 jobs as part of a comprehensive £600 million cost-cutting and operational restructuring initiative. The changes are expected to be completed by the end of 2026 and are designed to enhance the company’s agility, cost discipline, and use of technology.

The reduction involves two components: a direct cut of around 5,500 jobs worldwide and the transfer of an additional 3,500 positions to strategic outsourcing partners, including consulting firm Accenture. While the restructuring will affect roles across several countries, BAT has stated that the United States, its largest market, is excluded from the plan. Some jobs in the United Kingdom, Singapore, Costa Rica, Poland, and other locations will be among those outsourced.

BAT, a London-headquartered FTSE 100 company known for brands such as Dunhill, Lucky Strike, Camel, and newer products like Vuse vapes and Glo heat-not-burn tobacco devices, has been undertaking this transformation under the internally named Fit2Win program. This initiative, launched last year, aims to simplify processes, improve compliance, and drive sustainable profit growth amid a shifting industry landscape.

The tobacco sector faces challenges from increasing regulation and heightened public health awareness, prompting BAT to expand its portfolio of alternative nicotine products while managing declines in traditional cigarette volumes. The company forecasts that its restructuring will generate £600 million in annual cost savings by 2028, supplementing an earlier announced £2 billion cost-saving target set for 2026 to 2030.

BAT’s chief executive, Tadeu Marroco, emphasized the company’s commitment to supporting affected employees “with care and respect” during the transition. He described the transformation as essential to creating a “future-ready organisation” that leverages technology and automation, including the deployment of AI-driven tools such as the company’s Ask Omni assistant. Observers have noted that BAT’s headcount has historically been high for its scale, suggesting efficiency improvements are warranted.

The company has also consolidated its manufacturing footprint recently, including plans to close the Heidelberg factory in South Africa by the end of 2026 and having earlier ceased operations in Mozambique.

BAT’s financial guidance for the year remains cautious. The company expects group revenue growth at the lower end of its medium-term target range of 3 to 5 percent, with adjusted operating profit growth projected between 4 and 6 percent. Growth in new product categories is anticipated to be stronger in the United States, following regulatory changes under the Trump administration, where BAT’s business reportedly supported pro-vaping campaign efforts.

Market reaction to the restructuring news included a modest decline in BAT’s share price, reflecting investor concerns over the impact of job cuts and structural shifts within the company. Industry analysts view the overhaul as a necessary response to evolving market dynamics but note the importance of balancing cost reductions with ongoing revenue and profit growth.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.