British American Tobacco to lay off 5,500 employees in AI-driven restructuring

UK-based multinational tobacco company British American Tobacco (BAT) has announced plans to cut 5,500 jobs globally as part of an initiative to expand tech-driven operations, increase the integration of Artificial Intelligence (AI), and reduce corporate overheads. In addition, the company will outsource another 3,500 roles to external agencies.

The manufacturer of popular cigarette brands including Lucky Strike and Dunhill made the announcement in an official statement released on Monday (June 29).

BAT revealed that its ongoing restructuring program aims to save £600 million (approximately $792 million) annually by 2028. This strategy will directly affect nearly 20% of the company's total global workforce of roughly 47,000 employees.

According to a report by British media outlet The Guardian, the restructuring layout will directly or indirectly affect around 9,000 workers worldwide this year. Among them, 5,500 employees will lose their jobs, while the responsibilities of 3,500 positions will be shifted to outsourcing models.

"Our goal is to build a future-ready, more efficient, and cost-effective organization through AI-driven transformation," said Tadeu Marocco, Chief Executive of BAT. "The impact of this transformation will be felt by many of our colleagues. However, throughout this process, we will treat affected employees with the utmost respect and care, ensuring all necessary support is provided."

Industry analysts note that as the adoption of artificial intelligence rapidly accelerates across various global sectors, multinational conglomerates are increasingly restructuring their workforces to lower operational expenditures and optimize efficiency. British American Tobacco's latest move aligns directly with this ongoing global corporate trend.