British American Tobacco (BAT) has announced plans to cut jobs and increase its use of artificial intelligence as part of a drive to simplify operations and boost productivity. The FTSE 100 tobacco giant, which owns brands such as Lucky Strike and Pall Mall, confirmed the initiatives on Thursday alongside stronger-than-expected profits.
Interim finance boss Javed Iqbal told the Financial Times that the measures are expected to reduce the company's headcount and make the business “more digital and AI-focused”. BAT operates in over 140 markets and employs around 49,000 people globally.
The job cuts are linked to the Fit2Win programme launched last year, which aims to secure approximately £600 million in cost savings by the end of 2028. The company reported that total revenues edged 1% lower to £25.6 billion in 2025, while revenues from new categories grew by 5.5% to £3.62 billion, driven by surging demand for Velo oral nicotine products.
Revenues from the modern oral business, predominantly Velo nicotine pouches, leapt by 47.4% year-on-year, with strong growth in the US, Scandinavia, the UK and Switzerland. This helped offset a fall in vaping revenues, which were impacted by illicit products in the US and Canada, as well as excise changes in the UK and other markets.
Chief executive Tadeu Marroco said: “I am pleased with our accelerating momentum through 2025, enabling full-year delivery at the top end of our guidance. This reinforces our confidence in sustainably delivering our mid-term algorithm from 2026.” He added that the company remains committed to delivering sustainable shareholder value through progressive dividends and share buy-backs, including a £1.3 billion programme for 2026.
