British American Tobacco (BAT) has announced it will slash nearly a fifth of its global workforce as part of a major restructuring drive to pivot toward digital technology and smoking alternatives. This decision comes as the tobacco giant battles shrinking traditional cigarette sales and sluggish profit margins worldwide.
The restructuring will eliminate 5,500 roles and outsource another 3,500 from BAT's 47,000-strong global workforce. While the company did not specify which regions will bear the brunt of the layoffs, it confirmed that its largest market, the United States, will not be affected.
BAT Chief Executive Tadeu Marroco stated the cuts, which are already underway and scheduled for completion by the end of the year, aim to make the company "more agile, cost disciplined and technology enabled."
| Restructuring Metric | Impact Details |
|---|---|
| Total Workforce Affected | ~19% (9,000 out of 47,000 employees) |
| Direct Layoffs / Outsourced | 5,500 roles cut / 3,500 roles outsourced |
| Projected Annual Savings | £600 million ($760 million) by 2028 |
| Excluded Markets | United States |
BAT is rapidly shifting focus to next-generation products like Vuse vapes and Velo nicotine pouches. However, this transition has been slow. In the US, delayed regulatory licensing for new smoke-free products has fueled an influx of illegal Chinese disposables, severely impacting BAT's sales and market share.
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