British American Tobacco to slash 9,000 jobs as it turns to AI
Summary
British American Tobacco (BAT) will cut about 9,000 jobs this year to reduce costs and use more technology, including artificial intelligence (AI). The company is also shifting away from traditional cigarettes toward smoke-free products like vapes and nicotine pouches.Key Facts
- BAT employs around 47,000 people and plans to cut 5,500 jobs and outsource 3,500 more this year.
- Job cuts will not affect BAT’s business in the United States.
- The company aims to save £600 million annually by 2028 through its transformation program.
- BAT is working with Accenture to use advanced AI solutions and outsource some work.
- It is closing traditional cigarette factories, including one in South Africa, due to falling cigarette sales and illegal trade.
- BAT expects global cigarette sales to drop by about 2.5% this year.
- Revenue in BAT’s smoke-free products, such as Vuse vapes and Velo nicotine pouches, is growing in the mid-teens percentage range.
- BAT’s shares fell about 1.4% in early trading but are up nearly 12% so far this year.
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