**British American Tobacco to Cut 9,000 Jobs in Major Restructuring Effort**
British American Tobacco (BAT) has announced a significant reduction in its workforce, with plans to eliminate nearly 20% of its global employees as part of a comprehensive cost-cutting initiative. The company, known for its popular cigarette brands such as Lucky Strike and Dunhill, will be cutting 5,500 positions directly while outsourcing an additional 3,500 roles.
The decision comes amid ongoing challenges in the tobacco industry, particularly as traditional cigarette sales continue to decline. BAT has not disclosed the specific locations of the job cuts, although it has confirmed that the United States will not be affected by these changes. Currently, BAT employs approximately 47,000 people worldwide.
This restructuring effort is expected to yield annual savings of around £600 million by the year 2028. The company has previously indicated a shift towards becoming "more digital and AI-focused," reflecting a broader trend in the industry as consumers increasingly turn to alternative products such as vapes and nicotine pouches.
Chief Executive Tadeu Marroco emphasized that the job cuts are part of a strategy to enhance the company's agility, cost discipline, and technological capabilities. "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," Marroco stated.
The job cuts have already commenced, with the company aiming to complete the process by the end of this year. As BAT navigates this significant transformation, it is clear that the company is adapting to the evolving landscape of the tobacco market, where traditional smoking habits are increasingly being replaced by alternative nicotine delivery systems.
This move by BAT reflects a broader trend within the tobacco industry, where companies are grappling with declining cigarette sales and seeking new avenues for growth. The emphasis on digital innovation and cost efficiency is likely to shape the future of the company as it strives to remain competitive in a rapidly changing market.