BAT Restructures, Cutting 9,000 Jobs to Boost Tech Agility

British American Tobacco will lay off 9,000 workers to enhance its technology focus, with 5,500 roles cut and 3,500 outsourced. Aimed at improving agility and cost discipline, the restructuring highlights the shift towards nicotine alternatives amidst challenges like declining cigarette sales and intense market competition.

British American Tobacco (BAT) is embarking on a significant restructuring initiative that will see nearly 9,000 jobs eliminated as part of the company's strategic pivot towards enhanced technology integration. According to a Reuters report, the cigarette manufacturer will reduce its workforce by cutting 5,500 positions while outsourcing an additional 3,500 roles.

This sweeping overhaul aligns with BAT's broader ambition to become more agile, cost-efficient, and technologically advanced, striving for USD793 million in annualized savings by 2028. CEO Tadeu Marroco emphasized the company's commitment to supporting affected employees during this transition.

The restructuring efforts underscore BAT's focus on diversifying its product line to include more vapes and nicotine pouches, in response to declining cigarette sales and the influx of cheaper tobacco alternatives. The company's challenges are compounded by stricter regulations in key markets such as the United States.

Additionally, BAT has been grappling with illicit trade issues, notably in South Africa, where it recently closed a facility operating at just 35% capacity. Meanwhile, a strategic partnership with Accenture is expected to enhance BAT’s agility and transformation within its global operations.