In a bid to accelerate its artificial intelligence-led transformation strategy, British American Tobacco has announced a global workforce reduction of 5,500 jobs, according to reports.
The workforce reduction is part of BAT's "Fit2Win" programme, introduced last year, aimed at streamlining operations, improving cost efficiency and building a more technology-focused organisation. The initiative is focused on simplifying operations and improving competitiveness in a rapidly changing business environment, Sky News reported.
Apart from the layoffs, around 3,500 roles are being shifted to strategic partners, including professional services firm Accenture. The combined workforce changes impact nearly one-fifth of BAT's employees globally, excluding its US workforce.
BAT CEO Tadeu Marroco said the company was building a "future-ready organisation" by becoming more technology-enabled and operationally efficient. "These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect."
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BAT, which owns brands including Lucky Strike cigarettes and Vuse vaping products, expects the transformation programme to generate annual savings of around £600 million by the end of 2028. The company said most changes had already been communicated to employees, while some consultations were still underway.
Details of UK job losses have not been disclosed, though affected roles are largely linked to group functions. The move comes amid growing concerns that AI adoption could accelerate job reductions, particularly in administrative and back-office functions, as companies seek higher productivity and lower costs.
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