June 29, 2026
British American Tobacco BATS.L plans to cut about 20 percent of its workforce as it pursues an AI-driven overhaul to lower costs and lift profits amid regulatory challenges and delayed launches.
The maker of Lucky Strike and Dunhill cigarettes said on Monday it would cut around 5,500 jobs and move roughly 3,500 roles to third-party firms, including Accenture <ACN.N>. The restructuring would affect around 9,000 employees in total, but excludes the US, the company's biggest market.
BAT, whose main profit engine, traditional tobacco, is in terminal decline and is shifting to smoking alternatives, did not say where the jobs would be cut.
It said the programme was expected to deliver £600 million ($793 million) in additional annualised savings by 2028, with £500 million targeted by 2027.
