British American Tobacco to cut 5,500 roles, outsource 3,500 for £600m savings
BTI•British American Tobacco plans to cut 5,500 roles and outsource 3,500 more–around 19% of its 47,000 workforce–to save £600 million per year by 2028, adding to £500 million already targeted for 2027. The restructuring, excluding the US, follows declining cigarette volumes and aims to accelerate its smokeless product pivot.
1. Job Cuts and Outsourcing
British American Tobacco will eliminate 5,500 positions and transition 3,500 roles to third-party providers, touching roughly 9,000 employees or nearly 19% of its 47,000-strong global workforce. The cuts apply to all regions except the US, where operations run under its Reynolds American subsidiary.
2. Cost Savings Plan
The overhaul aims to deliver annual cost savings of £600 million by 2028, on top of £500 million already earmarked for 2027. Outsourced functions will leverage partnerships with Accenture and ITC Infotech as part of an expanded technology and service model.
3. Strategic Shift and Market Response
The move addresses declining traditional cigarette demand by reallocating resources toward smokeless brands like Vuse, glo and Velo, though US regulatory delays have constrained rollout. Shares dipped about 2.5% following the announcement, reflecting investor caution over execution risks.
