British American Tobacco cuts 5,500 jobs in AI-driven restructuring

Key Facts

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.

At 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.