British American Tobacco (BAT) has announced a major restructuring that will affect approximately 9,000 roles worldwide as part of its Fit2Win transformation programme.
The company plans to eliminate around 5,500 jobs globally (excluding its US operations) and transition a further 3,500 roles to strategic partners such as Accenture and ITC Infotech.
The changes form part of a broader effort to simplify operations, increase use of technology and AI, and deliver approximately £600 million (€517 million) in annual cost savings by the end of 2028.
BAT described the programme, launched in 2025, as essential to make the business “more agile, cost disciplined and technology enabled”.
Chief Executive Tadeu Marroco said the changes would strengthen the company’s ability to compete in a rapidly evolving environment.
“These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect,” he added.
The restructuring includes strategic partnerships with technology and business services firms, optimisation of the manufacturing footprint, and reorganisation of global service hubs.
Roles in areas such as digital, IT, and supply network operations are among those transitioning to partners.
BAT, which produces brands including Lucky Strike, Camel, Dunhill, and Vuse vapes, faces ongoing challenges in the traditional tobacco sector, including declining cigarette volumes in some markets, stricter regulation, and the shift towards newer nicotine products.
Some reports have framed the moves as part of a wider trend of large corporations using AI to reduce headcount.
BAT emphasised that the programme is not solely about cuts but about reshaping the organisation through partnerships and technology for long-term sustainability.
The company said most changes have already been communicated to employees and that consultations are proceeding in line with local requirements.
It stressed that the US business is not affected by the programme but did not provide country-by-country breakdown.
This latest announcement continues a pattern seen across parts of the consumer goods sector, where companies are investing in automation and external expertise to remain competitive amid economic pressures, government regulation and technological change.
BAT has repeatedly stated its long-term ambition to build a smoke-free future, with a growing focus on harm reduction through newer nicotine products such as vapes and modern oral products.
The company argues that these alternatives offer less harmful options for adult smokers who would otherwise continue using traditional cigarettes, while investing in science and regulation to support the transition.
