British American Tobacco, the London-listed tobacco group, has confirmed a major restructuring that will remove 5,500 jobs globally and move a further 3,500 roles to strategic partners as it advances an AI-driven transformation programme. The company said these moves together affect roughly 20% of its worldwide workforce.
In a statement, the company indicated that the majority of the changes have already been confirmed with employees. It added that the remaining consultations are being conducted in accordance with local legal and procedural requirements, without specifying which jurisdictions remain subject to consultation.
The announced headcount reductions explicitly exclude the United States.
Financially, the cost-saving initiative is expected to generate incremental annualised savings of A3600 million by 2028, with a nearer-term target of A3500 million to be achieved by 2027. The company framed the measures as part of a wider AI-led transformation intended to reshape how it operates.
Management did not provide additional operational details or a breakdown of which functions or regions will see the largest reductions, beyond noting the transfer of 3,500 roles to strategic partners. The statement focused on the scale of workforce impact, the timetable for targeted savings, and the ongoing consultation process required by local employment rules.
Those consultations remain a live element of the programme and, as the company noted, will proceed in compliance with applicable local requirements. The firm did not expand on how the changes will be implemented day-to-day or on potential transitional arrangements for affected employees.
While the programme targets significant cost savings by 2027 and 2028, the company did not provide further detail in the release on the specific investments or technological deployments underlying the "AI-driven" description of the transformation.
Overall, the announcement sets out a substantial reshaping of the group's workforce and cost base, with the company continuing consultations and communications with employees as required by local rules.