British American Tobacco (BAT) has announced 5,500 job cuts worldwide as it accelerates an artificial intelligence-led transformation to streamline operations and lower costs.
The layoffs are part of the company’s Fit2Win programme, introduced last year to simplify its business, improve efficiency, and build a more technology-driven organisation.
Alongside the job reductions, BAT will transfer another 3,500 positions to strategic partners, including consulting firm Accenture. Together, the restructuring affects around 9,000 roles, or nearly one-fifth of BAT’s global workforce, excluding employees in the United States.
Chief Executive Tadeu Marroco said the initiative is aimed at creating a faster, leaner, and more agile company while maintaining support for employees impacted by the restructuring.
BAT did not specify how many jobs would be affected in the United Kingdom, where it employs hundreds of people in corporate and group functions. The company’s shares fell more than one percent after the announcement.
The Fit2Win programme is expected to deliver approximately £600 million in annual cost savings by the end of 2028.
The move reflects a wider corporate trend of adopting artificial intelligence to automate administrative functions, reduce costs, and improve productivity. Several major companies, including Standard Chartered, have also announced AI-led workforce restructuring this year.
