Mirian Gom 
LONDON – British American Tobacco (BAT) announced plans on Monday to eliminate 5,500 jobs and outsource another 3,500 positions globally as the tobacco giant accelerates efforts to cut costs and shift towards alternative nicotine products.
The job cuts will affect about 20 per cent of the company’s 47,000 employees worldwide and are expected to save approximately £600 million annually by 2028.
The maker of Lucky Strike and Dunhill cigarettes said the restructuring excludes the United States, where its operations are managed through Reynolds American.
Chief Executive Tadeu Marroco said the company is restructuring to become more efficient and technologically driven.
“We are building a future-ready organisation that is more agile, cost-disciplined and technology-enabled,” Marroco said.
“These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect.”
The company, like other major tobacco manufacturers, has faced declining demand for traditional cigarettes as consumers increasingly shift to vaping products and oral nicotine alternatives.
Investors reacted cautiously to the announcement, with BAT shares falling 1.5 per cent on the London Stock Exchange.
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