Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeWorkBAT cuts 9,000 jobs as its turnaround program intensifiesShares of BAT fell as much as 1.9% in LondonAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.Packs of Pall Mall cigarettes manufactured by British American Tobacco Plc, sit in a display rack inside a news agents in London, U.K., on Friday, July 11, 2014. Photo by Simon Dawson/BloombergBritish American Tobacco Plc is reducing its 47,000-strong global workforce by about one-fifth as part of its sweeping plan to bring down costs and simplify operations.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorBy the end of this year, the maker of Dunhill cigarettes will have slashed 5,500 jobs and outsourced a further 3,500, according to an internal notice that lays bare the scale of change taking place at the tobacco giant. The numbers, seen by Bloomberg News, do not include BAT’s U.S. business, which is operated through its subsidiary Reynolds American Inc.Most other countries BAT operates in are affected by its ongoing restructuring program and the company detailed the extent of job cuts on Monday. It has pledged to make £600 million (US$793 million) of annual cost savings by the end of 2028.FP Work touches on HR strategy, labour economics, office culture, technology and more.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Work will soon be in your inbox.We encountered an issue signing you up. Please try againShares of BAT fell as much as 1.9 per cent in London, trimming year-to-date gains. The stock was up nearly 13 per cent since the start of the year through Friday’s close.“Whilst the market has been aware of this savings programme, we think the scale of this workforce reduction is unexpected and could some as a surprise to investors,” Barclays analyst Pallav Mittal wrote in a note.BAT is contending with falling demand for traditional cigarettes in many markets and a need to invest in and develop more sustainable nicotine alternatives, which have soared in popularity as people look for ways to quit smoking. Like its rival Philip Morris International Inc., BAT wants to generate more than half of its revenue from “smoke-free” nicotine products such as Vuse vapes and Velo nicotine pouches.Part of BAT’s restructuring has involved closing traditional cigarette factories. The company has previously said it’s in the process of shutting its eighth largest cigarette factory, located in South Africa, due to competition from illicit trade.Interim Chief Financial Officer Javed Iqbal also said in February that the use of artificial intelligence and data analytic tools would also affect staffing levels. Most of BAT’s planned cost savings, about £500 million, will be delivered by 2027, he said.BAT has partnered with Accenture to outsource a number of functions, including service centers, which typically employ large proportions of companies’ overall workforces. Certain roles in the U.K., Singapore, Costa Rica, Mexico, Poland, Romania and Malaysia have since moved to Accenture, said BAT in its latest notice. Meanwhile, some roles in Pakistan have been outsourced to Systems Ltd., a Pakistani technology and business firm, it added.“These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we position the business for the future,” Chief Executive Officer Tadeu Marroco said in a statement.Earlier this year, BAT said it was on track to meet its full-year targets even as global cigarette industry volumes decline, helped by a strong performance in the US where it is making gains on rival PMI with its Velo Plus pouches.Other tobacco companies are trying to cut costs to improve productivity and free up funds to invest in growth areas, like nicotine alternatives. Imperial Brands Plc, another U.K.-headquartered company, said in May it was on track to deliver £320 million of annual cost savings by 2030.PMI, which cut its outlook in June after writing down the value of its investment in its Canadian affiliate, is more than half way through a plan to generate US$2 billion of cost savings by 2026. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.