British American Tobacco slashes 9,000 jobs after AI initiative promises to cut annual costs by $800B
British American Tobacco is laying off roughly 20% of its workforce in an AI-driven push to secure almost $800 billion in annual cost savings by 2028.
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BAT plans to cut 5,500 jobs worldwide and move another 3,500 roles to strategic partners by the end of 2026.
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The restructuring will affect about 9,000 employees, but BAT says US employees are not included in the changes.
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The company is using strategic partnerships, including with Accenture, to take over some roles and improve digital processes.
BAT plans to cut 5,500 jobs worldwide and will migrate an additional 3,500 roles to strategic partners by the end of 2026, the company announced.
The restructuring will affect 9,000 employees, but this change doesn’t affect US employees in the company’s largest market.
Strategic partnerships with companies like Accenture are said to be “transforming operations,” and BAT’s partners will take over these 3,500 roles as the company simplifies its operations.
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The company partnered with Accenture in 2025 to simplify digital processes and “improve speed to market and strengthen compliance agility” across BAT’s operations.
The Fit2Win program, created by BAT, was established last year to reduce complexity, build closer relationships with leading technology and business service companies, and streamline the business itself.
One of Fit2Win’s main principles is AI adoption, aiming to boost profits amid turbulent regulatory changes while cutting annual costs.
With widespread AI adoption, the CEO of BAT, Tadeu Marroco, said that “these changes affect many of our colleagues...as we position the business for the future.”
The tobacco company has said that “most changes have now been confirmed with employees” and “those consultations that remain are being carried out in compliance with local information and consultation requirements.”
BAT is the largest tobacco company based in Europe, with 47,000 employees and over $25 billion in revenue.
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