British American Tobacco Cuts 9,000 Jobs in AI-Driven Restructure
BAT will shift 3,500 roles to outside firms as it targets £600 million in annual savings and cuts costs amid weak tobacco sales.
- On Monday, British American Tobacco announced it will cut 5,500 direct jobs and outsource 3,500 roles to third-party firms, affecting 9,000 employees globally while excluding the United States.
- Declining demand for traditional cigarettes prompted the overhaul as BAT pivots toward smoking alternatives like Vuse vapes and Velo nicotine pouches, targeting £600 million in annualized savings by 2028.
- Chief Executive Officer Tadeu Marroco stated the company aims to achieve £500 million in reductions by 2027 through partnerships with Accenture, building a 'future-ready organization' more agile and technology-enabled.
- Investors gave the news a muted reception, with BAT shares slipping around 2.5% during Monday's trading session as Barclays analyst Pallav Mittal warned the reductions could surprise markets.
- With traditional tobacco in terminal decline, BAT predicts a 2.5% global industry sales volume drop this year while targeting half its revenue from 'smokeless' products by 2035.
65 Articles
65 Articles
Cigarette use is at an all-time low. A tobacco giant pivots to new addictive products
As fewer and fewer people look to get their nicotine fix from traditional cigarettes, one of the world’s largest tobacco companies is trying to keep up. British American Tobacco, known for brands like Pall Mall and Lucky Strike, says it is cutting 20% of its 47,000-person workforce. The goal is to cut 5,500 jobs by the end of this year and outsource another 3,500. Unbiased. Straight Facts.TM American Tobacco predicts that global sales volu…
Lucky Strike maker BAT to axe 5,500 jobs worldwide in €695m cost drive
British American Tobacco is cutting 5,500 jobs across the globe and handing thousands more roles to outside contractors, as the cigarette giant races to strip out costs and pivot towards vapes and nicotine pouches.
The tobacco company says the layoffs are part of a program aimed at making the company more flexible, cost-conscious and innovative.
British American Tobacco plans to cut about 20% of its workforce, while seeking artificial intelligence-driven restructuring to reduce costs and increase profits through regulatory challenges and delays in launches. The company reported on Monday (29) that it would cut about 5,500 jobs and transfer approximately 3,500 jobs to outsourced companies, including Accenture, affecting about 9,000 workers in total. Restructuring excludes the United Stat…
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