June 29 (THEWILL) — British American Tobacco (BAT) is set to eliminate about 9,000 jobs globally as part of a sweeping restructuring programme aimed at reducing costs, simplifying operations and accelerating its transition to smoke-free products.
According to a Bloomberg report, the planned cuts represent nearly one-fifth of BAT’s global workforce of about 47,000 employees, excluding its US operations, which are managed through subsidiary Reynolds American Inc.
An internal notice seen by Bloomberg showed that BAT plans to eliminate 5,500 positions and outsource another 3,500 roles by the end of this year.
The company expects the restructuring to generate annual savings of £600 million by the end of 2028, with about £500 million of those savings expected by 2027.
The restructuring reflects declining demand for traditional cigarettes and BAT’s increasing focus on next-generation nicotine products such as Vuse vaping devices and Velo nicotine pouches.
Interim Chief Financial Officer Javed Iqbal had earlier indicated that greater use of artificial intelligence and data analytics would also reshape staffing requirements as the company modernises its operations.
The announcement surprised some market observers despite BAT’s previously disclosed cost-cutting plans. Barclays analyst Pallav Mittal said the scale of the workforce reduction was larger than investors had anticipated.
BAT shares fell as much as 1.9 percent in London following the report, although the stock remains up about 13 percent this year.
As part of the overhaul, BAT is also closing selected cigarette manufacturing facilities, including one of its largest plants in South Africa, citing the growing impact of illicit tobacco trade.
The restructuring comes as BAT seeks to generate more than half of its revenue from smoke-free products, mirroring a broader shift across the global tobacco industry.
In Nigeria, the company continues to face long-running litigation over alleged smoking-related healthcare costs. Lawsuits filed by the Federal Government and five states seek damages of about N10.6 trillion over claims linked to the marketing and sale of tobacco products.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
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