BAT reports 5,500 job cuts in cost-savings drive

(Sharecast News) - British American Tobacco has revealed plans to cut 5,500 jobs as part of its Fit2Win transformation programme that aims to save £600m in costs each year. The plan, which was first launched in 2025, was designed to make the tobacco, cigarettes and smokeless products group "more agile, cost disciplined and innovative".

BAT said it wants to reduce complexity, build closer partnerships with tech and business services companies, and streamline the business to deliver targeted cost savings by the end of 2028.

These partnerships included a deal with Accenture to combine digital capabilities and global expertise to simplify processes, improve speed to market and strengthen compliance agility. As part of the partnership, a number of roles transitioned to Accenture, BAT explained.

"By the end of the year, we expect these changes to have resulted in a reduction of circa 5,500 roles globally, excluding the U.S. which is not in scope," BAT said in a statement on Monday. "In addition, around 3,500 roles have moved to strategic partners."

Job cuts have been on the cards since February when BAT's annual results mentioned ambitions to "simplify" operations and pursue "productivity initiatives" as part of its increased use of AI - though the company did not propose any layoffs at the time.

"We are building a future-ready organisation that is more agile, cost disciplined and technology enabled. Fit2Win is central to this ambition, strengthening how we operate and our ability to compete in a rapidly evolving environment," said chief executive Tadeu Marroco in a statement.

"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."

BAT shares were down 1.7% at 4,672p by 1001 BST.