British American Tobacco Cuts 9,000 Jobs in AI-Driven Restructure
BAT will shift 3,500 roles to outside firms as it targets £600 million in annual savings and cuts costs amid weak tobacco sales.
- On Monday, British American Tobacco announced it will cut 5,500 direct jobs and outsource 3,500 roles to third-party firms, affecting 9,000 employees globally while excluding the United States.
- Declining demand for traditional cigarettes prompted the overhaul as BAT pivots toward smoking alternatives like Vuse vapes and Velo nicotine pouches, targeting £600 million in annualized savings by 2028.
- Chief Executive Officer Tadeu Marroco stated the company aims to achieve £500 million in reductions by 2027 through partnerships with Accenture, building a 'future-ready organization' more agile and technology-enabled.
- Investors gave the news a muted reception, with BAT shares slipping around 2.5% during Monday's trading session as Barclays analyst Pallav Mittal warned the reductions could surprise markets.
- With traditional tobacco in terminal decline, BAT predicts a 2.5% global industry sales volume drop this year while targeting half its revenue from 'smokeless' products by 2035.
86 Articles
86 Articles
The tobacco giant British American Tobacco (BAT) clarified what will happen to its staff in Costa Rica after announcing Monday the elimination of 5,500 jobs worldwide, as part of Fit2Win, a “transformation program” with which it aims to save approximately $792 million by 2028.In consultation with La Nación, the company said that there have been no cuts in personnel in the country and that the plan will not have a direct impact on its operations.…
In the tobacco industry, there are positions on the table, not only with British American Tobacco. The decreasing number of smokers, regulatory hurdles and a growing black market are taking their toll.
Fox Business
The New York LedgerTop tobacco company to cut thousands of jobs
British American Tobacco is planning to cut about 20% of its workforce as it moves forward with using artificial intelligence (AI) to reshape its operations with the goal of lowering costs and boosting profits.The maker of Lucky Strike and Dunhill cigarettes said Monday it plans to cut around 5,500 jobs and outsource about 3,500 roles to third-party firms, including Accenture. The restructuring would impact about 9,000 employees total, while exc…
British American Tobacco to lay off 9,000 employees as it ramps up AI efforts
British American Tobacco (BAT), the company behind Lucky Strike and Dunhill cigarettes, is cutting 5,500 roles and outsourcing 3,500 more as part of its cost-cutting drive. While it did not mention from where the cuts would come, the company said the U.S. was not affected. Earlier this year, BAT said it was planning savings to make it “more digital and AI-focused.” This comes amid shrinking cigarette sales, as smokers increasingly switch to vape…
DECRYPTAGE - The cigartier expects to save 700 million euros by 2028. It wants to gain agility, as consumption of nicotine evolves.
Cigarette use is at an all-time low. A tobacco giant pivots to new addictive products
As fewer and fewer people look to get their nicotine fix from traditional cigarettes, one of the world’s largest tobacco companies is trying to keep up. British American Tobacco, known for brands like Pall Mall and Lucky Strike, says it is cutting 20% of its 47,000-person workforce. The goal is to cut 5,500 jobs by the end of this year and outsource another 3,500. Unbiased. Straight Facts.TM American Tobacco predicts that global sales volu…
Coverage Details
Bias Distribution
- 46% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
