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🇬🇧 United Kingdom /Economy & Trade

British American Tobacco to slash 9,000 jobs as it turns to AI

From The Guardian · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • British American Tobacco (BAT) will cut 9,000 jobs, about a fifth of its workforce, this year.
  • The cuts are part of a transformation program to reduce costs and become more technology-enabled, aiming for £600 million in annual savings by 2028.
  • The company is investing in nicotine alternatives and AI, with no job cuts planned in the U.S. subsidiary Reynolds American.

British American Tobacco (BAT) plans to slash 9,000 jobs this year, representing approximately one-fifth of its 47,000-strong global workforce. The cigarette giant is implementing this significant reduction as part of a strategic transformation aimed at cutting costs and becoming a more "technology enabled" organization.

building a future-ready organisation that is more agile, cost disciplined and technology enabled

— Tadeu MarrocoBAT's chief executive on the company's transformation program.

The FTSE 100 company expects these measures to generate £600 million in annual cost savings by the end of 2028. BAT's chief executive, Tadeu Marroco, described the changes as positioning the business for the future, creating a "future-ready organisation that is more agile, cost disciplined and technology enabled." He acknowledged the impact on employees, stating the company is focused on supporting them through the transition with care and respect.

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

— Tadeu MarrocoBAT's chief executive on the impact of the job cuts.

These workforce reductions are occurring as BAT grapples with declining demand for traditional cigarettes and increasing pressure to invest in next-generation nicotine products. The company is heavily investing in smoke-free alternatives like Vuse vapes and Velo nicotine pouches, which have shown accelerating revenue growth. Notably, there will be no job cuts within its U.S. operations, which are managed by its subsidiary Reynolds American. Some roles have already been outsourced to technology consultancy Accenture as part of a partnership to leverage advanced AI solutions.

advanced AI solutions

— Tadeu MarrocoOn the partnership with Accenture to outsource work.
DistantNews Editorial

Originally published by The Guardian. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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