- British American Tobacco said it plans to cut 5500 jobs by the end of the year while also outsourcing another 3500 roles.
- British American Tobacco explained that the move is part of a larger plan to reshape the business and improve efficiency.
- Like many tobacco companies, British American Tobacco is facing lower demand for traditional cigarettes as more people move toward alternative product
One of the world's biggest tobacco companies is making major changes in its business. British American Tobacco (BAT) has announced that it will reduce its workforce this year to lower costs and rely more on technology.
The company said it plans to cut 5500 jobs by the end of the year while also outsourcing another 3500 roles. In total, around 9000 employees will be affected by the changes. BAT explained that the move is part of a larger plan to reshape the business and improve efficiency.
Like many tobacco companies, it is facing lower demand for traditional cigarettes as more people move toward alternative products. The company expects these changes will save around £600 million every year by the end of 2028.
In a statement, BAT CEO Tadeu Marroco said the changes are focused on making the company more flexible, reduce costs and increase its use of technology to improve the way it operates.
He said, “We are building a future ready organisation that is more agile, cost disciplined and technology enabled. 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.
“Whether through strategic partnerships or a more focused operational footprint, we are creating a simpler, faster BAT.”
Beckett said the job cuts are part of BAT's plan to reorganise its tobacco business and focus more on newer nicotine products, such as their vapes and nicotine pouches. He added that these products require fewer workers to make than traditional cigarettes.
BAT expects sales of tobacco products across the industry to fall by 2.5% this year. As part of its cost cutting efforts, the company has been reducing and reorganising its manufacturing operations over the past 18 to 24 months, including the previously announced closure of one of its factories in South Africa.
The affected positions include jobs in Costa Rica, Mexico, Poland, Romania, Malaysia and some roles in Pakistan, as well as certain digital and technology jobs based in Poland and Romania.
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