British American Tobacco (BAT) is eliminating nearly 20 percent of its international staff as part of an extensive effort to reduce expenses. The corporation, recognized for brands like Lucky Strike and Dunhill, is removing 5,500 staff positions while outsourcing an additional 3,500 roles.
While the firm did not disclose the specific geographic locations of the job losses, it confirmed that the United States remains unaffected by these changes. This strategy aims to generate annual savings of approximately £600 million by 2028.
Currently employing 47,000 people, the company previously indicated plans to pivot toward digital and technology-driven operations. These reductions come as traditional cigarette consumption declines, with consumers gravitating toward alternatives such as vapes and nicotine pouches. The process has already commenced and is scheduled for completion by the end of this year.
Chief executive Tadeu Marroco stated that these measures will cultivate a more flexible, cost-conscious, and tech-integrated organization. He added that the company is prioritizing support for impacted employees throughout this period of transition.