British American Tobacco cuts 5,500 jobs in AI drive

British American Tobacco (BAT) is cutting 5,500 jobs across its global operations as an AI-focused transformation programme gathers pace.

The London-based firm, which includes Lucky Strike cigarettes and the Vuse vaping brand in its stable, said the job losses formed part of its Fit2Win programme launched last year.

It is designed to make the group "more agile, cost disciplined and innovative".

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In addition to the job cuts, BAT said a further 3,500 roles would be moved to ​strategic partners. They include the professional services firm Accenture.

The employment changes, as a whole, affect a fifth of the company's workforce and only exclude its employees in the US.

Chief executive Tadeu Marroco said: "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.

"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.

"Whether through strategic partnerships or a more focused operational footprint, we are creating a simpler, faster BAT."

The company's shares were down more than 1% following the announcement.

BAT said most ‌of the changes it planned had been confirmed ‌with employees but some consultations were yet to be completed.

It did not give details of how many jobs were to be lost in the UK, where it employs hundreds of staff.

They are mainly in group functionality roles.

BAT said Fit2Win was expected to deliver around £600m in annual cost savings by the end of 2028.

Its programme builds on fears that job cuts linked to AI-related investment will become more widespread as technology evolves that can boost productivity and reduce costs, especially in areas such as back office functions.

The boss of London-listed Standard Chartered Bank faced a backlash last month when he signalled thousands of "lower-value human capital" jobs would be lost under a drive by the Asia-focused bank to bolster profitability.

(c) Sky News 2026: British American Tobacco cuts 5,500 jobs in AI drive