business
British American Tobacco to Cut 5,500 Jobs and Outsource 3,500 Roles to Save £600 Million a Year
The tobacco company said the moves will affect about 9,000 staff and target £600 million in annual savings by 2028. The restructuring spares its US operations and forms part of a shift toward smokeless products.
EuronewsAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
British American Tobacco announced on Monday that it will cut 5,500 jobs worldwide. The company also plans to outsource around 3,500 positions to third parties, with the two measures together affecting roughly 9,000 staff out of its 47,000 global workforce. Euronews reported that the restructuring aims to save £600 million a year by 2028.
This target adds to £500 million in cuts already planned for 2027, and part of the outsourced work will go to consulting firm Accenture. The changes spare the US market, which operates through the Reynolds American subsidiary. Chief executive Tadeu Marroco stated the cuts form part of building a more agile, cost-disciplined and technology-enabled company.
He added that British American Tobacco remains committed to supporting affected staff through the change with care and respect. The job cuts have already started and are scheduled for completion by the end of this year. The company has set a target of drawing half its revenue from smokeless products by 2035.
BAT shares slipped around 2.5 percent halfway through London's Monday trading session.
