UK cigarette giant BAT to cut 5,500 jobs globally

British American Tobacco (BAT), the maker of Lucky Strike and Dunhill cigarettes, is implementing significant global job cuts, eliminating 5,500 positions and outsourcing an additional 3,500 roles. This restructuring aims to achieve annual savings of £600 million ($792 million) by 2028.

The cuts will affect approximately 20 percent of BAT's 47,000-strong global workforce. The company, like other major tobacco firms, is grappling with declining demand for traditional cigarettes. In response, BAT is increasing its focus on newer product categories, including vapes and oral nicotine products.

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

"We are building a future-ready organisation that is more agile, cost disciplined and technology enabled," stated chief executive Tadeu Marroco. He acknowledged the impact on employees, saying, "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."

The job reductions will impact BAT's global operations, with the exception of the United States, its largest market, which operates under its subsidiary Reynolds American. Shares of BAT saw a slight decline of 1.5 percent on the London Stock Exchange following the announcement. Analysts note that the scale of these cutbacks reflects broader industry trends and raises concerns about the labor market.

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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.