British American Tobacco (BAT) has announced it will cut 9,000 jobs as part of a major restructuring aimed at reducing costs. The tobacco giant, known for brands such as Dunhill and Lucky Strike, will directly eliminate 5,500 positions and outsource a further 3,500 roles to partner businesses, including Accenture.
Cost-Saving Targets and Timeline
The job cuts are central to BAT's "Fit2Win" cost-saving strategy, which targets annual savings of £600 million by 2028. The majority of the redundancies have already been implemented, with the process expected to be completed by the end of the year. The cuts affect roles across various markets, excluding the United States, and include some positions in the United Kingdom.
Outsourcing and Strategic Partners
Around 3,500 roles are being transferred to strategic partner firms such as Accenture. These include positions from BAT's supply network operations in the UK and Singapore. The company stated that the restructuring is designed to make the organization more "agile, cost disciplined and innovative."
CEO Statement and Market Reaction
Tadeu Marroco, chief executive of BAT, 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." Shares in the group were down 1.6% at 4,674p on Monday morning.
Impact and Future Outlook
BAT has invested heavily in new areas, including its Glo heated tobacco products, as part of its shift toward reduced-risk products. The company reported that the changes are "already delivering" improved operational efficiencies across its markets. The restructuring is expected to streamline operations and position the company for long-term growth in a declining traditional cigarette market.
