British American Tobacco to cut 9,000 jobs
Summary
British American Tobacco is cutting nearly 9,000 jobs worldwide as part of a plan to reduce costs and focus more on digital and AI technology. The company is shifting from traditional cigarettes to vaping and nicotine pouch products but is facing challenges like illegal products and strict regulations.Key Facts
- British American Tobacco (BAT) will cut about 5,500 jobs and outsource 3,500 more, nearly one-fifth of its 47,000 global workforce.
- The US workforce is not affected by the job cuts.
- The company aims to save around £600 million a year by 2028 through these changes.
- BAT is moving focus from cigarettes to alternative products like Vuse vapes and Velo nicotine pouches.
- Sales and profits have been weak due to factors like the cost of living, higher taxes, and tough regulations in some markets.
- US regulators delay approval of new vaping products, leading to more illegal Chinese vaping goods in the market.
- Job reductions started already and will finish by the end of 2026.
- BAT's CEO said the cuts will help the company become more agile, cost-effective, and technology-focused.
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