- British American Tobacco (BAT) announced plans to reduce its global workforce by approximately 20% as part of an AI-driven transformation programme.
- The restructuring involves cutting 5,500 jobs and outsourcing a further 3,500 roles, impacting a total of 9,000 employees, with the US market excluded from these changes.
- This initiative aims to generate £600 million in annualised incremental savings by 2028, with £500 million targeted by 2027, to bolster profits and improve agility.
- The move addresses the Lucky Strike and Dunhill maker's sluggish sales and profit growth, the decline in traditional tobacco, and challenges in its new categories like vapes and nicotine pouches.
- CEO Tadeu Marroco stated the changes are intended to make the company more agile, cost-disciplined, and technology-enabled, while ensuring support for affected colleagues.
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