British American Tobacco (BAT) has cut 5,500 jobs worldwide as it accelerates an artificial intelligence-driven transformation aimed at making the business more efficient, agile, and technology-enabled.
The company said the layoffs are part of its Fit2Win programme, launched last year to simplify operations, reduce costs, and improve competitiveness in a rapidly evolving business environment.
In addition to the job cuts, BAT announced that another 3,500 roles will be transferred to strategic partners, including professional services firm Accenture. Combined, the changes affect around 20 percent of the company’s global workforce, excluding employees in the United States.
Chief Executive Tadeu Marroco said the company is building a “future-ready organisation” that is more agile, cost-disciplined, and technology-enabled. He added that BAT remains focused on supporting affected employees during the transition while creating a simpler and faster business.
The company did not disclose how many jobs would be affected in the United Kingdom, where it employs hundreds of staff, mainly in corporate and group functions. BAT’s shares fell more than 1 percent following the announcement. BAT expects the Fit2Win programme to generate around £600 million in annual cost savings by the end of 2028.
The restructuring reflects a broader trend of companies increasingly using artificial intelligence to automate back-office functions and improve productivity. Earlier this year, Standard Chartered also signaled plans to eliminate thousands of lower-value roles as part of its own AI-driven efficiency programme.
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