BAT will cut 5,500 jobs and shift 3,500 roles to thirdparties. Photo credit: IANSBritish American Tobacco (BAT) will cut 5,500 jobs globally and outsource another 3,500 roles as part of an AI-led restructuring programme aimed at reducing costs and making the company more technology-driven.The restructuring, which will affect nearly 9,000 employees, excludes the United States, BAT's largest market. The company expects the programme to generate £600 million (around $793 million) in annualised incremental savings by 2028, with £500 million targeted by 2027.Announcing the overhaul on Monday, BAT chief executive officer Tadeu Marroco said the company would support affected employees during the transition."These changes affect many of our colleagues and we are focused on supporting them through this transition with care and respect," Marroco said in a statement, according to AFP.He added that the restructuring would make BAT "more agile, cost-disciplined and technology-enabled."BAT will eliminate 5,500 positions while transferring another 3,500 roles to third-party firms, including Accenture, as part of its broader productivity and artificial intelligence strategy.The move comes as the maker of Lucky Strike and Dunhill cigarettes faces slowing sales growth and mounting pressure on its traditional tobacco business. Reuters reported that BAT expects the global tobacco industry to contract by 2.5 per cent this year as consumers increasingly shift towards smoke-free alternatives.To offset declining cigarette sales, BAT has been expanding its portfolio of reduced-risk products, including Vuse vaping devices and Velo nicotine pouches. However, Reuters said the company has struggled to keep pace with rival Philip Morris International, while regulatory delays have slowed product launches in the United States.The report added that BAT's US business has also been affected by consumers switching to cheaper cigarette brands amid rising living costs, alongside competition from unauthorised Chinese vaping products. The company is also dealing with higher duties, tighter regulations and illicit tobacco trade in markets such as Australia and Bangladesh.Earlier this year, BAT had signalled that its productivity programme could result in job cuts. Reuters reported that while the company retained its financial guidance in June, the scale of the workforce reduction could surprise investors.BAT also said most of the role changes have already been communicated to employees, with the remaining consultations continuing in line with local labour requirements.