WSJ- British American Tobacco (BAT) is set to cut 9,000 jobs as part of a major transformation program aimed at becoming more AI-focused and shifting towards smoke-free products.
- The job cuts represent nearly a fifth of BAT's global workforce, which currently stands at approximately 47,000 employees.
- CEO Tadeu Marroco stated that the cuts are intended to make the company more agile, cost disciplined, and technology enabled.
- The company aims to achieve £600 million in annual cost savings by 2028 through these job cuts and other measures.
- BAT has been facing a decline in cigarette demand, with smoking in the UK falling by a quarter since 2019.
- The company has set a goal to derive more than half of its revenue from smoke-free products by 2035.
- BAT's smoke-free brands include Vuse and Glo, which are part of its strategy to adapt to changing consumer preferences.
British American Tobacco (BAT) is undergoing a significant transformation, cutting 9,000 jobs—5,500 directly and outsourcing 3,500—as part of a strategy to reduce costs and pivot towards AI and smoke-free products.129
CEO Tadeu Marroco emphasized the need for a “future-ready organisation” that is “more agile, cost disciplined and technology enabled.” The company aims to achieve £600 million in annual savings by 2028, reflecting a broader trend as smoking rates decline globally.5
BAT's workforce reduction represents nearly a fifth of its 47,000 employees, with job cuts affecting roles in the UK, Costa Rica, Mexico, Poland, Romania, and Malaysia.34
The company has also been consolidating its operations, including the closure of its factory in South Africa, and has partnered with Accenture to enhance its digital capabilities.
BAT's revenues fell 1% to £25.6 billion last year, despite adding 4.7 million consumers to its smokeless brands, such as vapes and nicotine pouches. The company aims for over half of its revenue to come from smoke-free products by 2035, as smoking in the UK has decreased by a quarter since 2019.
“British American Tobacco is set to cut 9,000 jobs as part of a major transformation towards AI and smoke-free products. This move reflects the company's strategy to adapt to declining cigarette demand and enhance operational efficiency.”
The Guardian
