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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move that underscores the structural headwinds facing the global tobacco industry, British American Tobacco (BATS.L) announced on Monday it will cut 5,500 jobs worldwide as part of its AI-driven transformation programme. The company said the reductions are part of a comprehensive restructuring aimed at streamlining operations and improving efficiency.
The job cuts come as the tobacco sector faces mounting pressure from stricter health regulations and a consumer shift toward reduced-risk alternatives, such as e-cigarettes and heated tobacco products. British American Tobacco is among the companies investing heavily in these alternatives, but the high cost of transition has prompted a broad overhaul. Market data shows the shares trading near the bottom of their weekly range.
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Sign InAt the close on June 26, BATS.L shares in London were at 4,751 pence, while the New York-listed shares (BTI) closed at $62.76. Investors are awaiting second-quarter results due in August to assess the impact of the cost-cutting plans on profit margins. Markets will also focus on any updates regarding a portfolio brand review or acceleration of the digital transformation.