British American Tobacco (BAT) has announced a major restructuring that will result in the elimination of approximately 9,000 jobs worldwide. This decision is part of a cost-cutting and corporate transformation strategy, including the integration of artificial intelligence.
According to the plan unveiled on Monday, approximately 5,500 jobs will be directly eliminated, while another 3,500 positions will be transferred to partner companies or external service providers, including the consulting firm Accenture. In total, nearly 20% of the group's workforce is affected by this reorganization.
This restructuring will not apply to the United States, which remains British American Tobacco's primary market and profit driver. The company did not specify which regions or subsidiaries will be most affected by these job cuts.
The group, which markets brands including Lucky Strike and Dunhill, is facing a difficult environment marked by the structural decline of traditional tobacco, increased regulatory constraints and delays in the development of its tobacco alternatives.
BAT estimates that this transformation program should generate around £600 million in annual savings by 2028, much of it as early as 2027. The stated objective is to improve profitability and strengthen the group's competitiveness in a changing market.
Despite these announcements, the group's share price fell by around 2% on the London Stock Exchange, underperforming the FTSE 100 index. Investors appear to remain cautious in the face of the scale of the restructuring and the uncertainties surrounding the company's strategic transition.
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