British American Tobacco to Cut 5,500 Jobs in Global AI-Driven Restructuring

British American Tobacco (BAT), the UK-based maker of Lucky Strike and Dunhill cigarettes, has announced plans to cut 5,500 jobs worldwide as part of a major restructuring aimed at expanding technology-driven operations and reducing costs. The company will also outsource approximately 3,500 additional roles to external service providers.

The announcement was made in a statement on Monday. BAT said the restructuring is expected to generate annual savings of £600 million (approximately $792 million) by 2028. The overhaul will affect nearly 20 percent of the company's global workforce of around 47,000 employees.

According to a report by The Guardian, the restructuring will impact nearly 9,000 positions globally this year, with 5,500 jobs to be eliminated by the end of 2026 and another 3,500 roles to be transferred to outsourcing partners.

BAT said the initiative is part of its broader transformation strategy, which includes greater adoption of artificial intelligence and digital technologies to improve efficiency and streamline operations.

Chief Executive Tadeu Marroco said the company is building a more agile, cost-conscious, and technology-enabled organization that is better equipped for the future.

"The transformation will have an impact on many of our colleagues," Marroco said. "We are committed to supporting those affected with care and respect throughout the transition while positioning the company for long-term success."