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British American Tobacco’s Restructuring Plans to Save £600 Million Per Year by 2028, Adding to Another £500 Million Cut Planned for 2027. U.S. Factories Are Excluded, and Part of the Outsourced Work Will Go to Accenture
British American Tobacco (BAT), owner of brands such as Lucky Strike, Dunhill, and Derby, has announced plans to cut 5,500 jobs globally. The restructuring will also involve outsourcing approximately 3,500 positions, bringing the total number of impacted employees to 9,000.
The information was published by ND Mais on September 6, 2026, in a report by Renato Becker, based on data released by Euronews with information from the AFP agency.
Cuts Impact 9,000 Workers Between Layoffs and Outsourcing
The total number of affected workers includes the 5,500 direct layoffs and the 3,500 positions that will be outsourced.
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Company Has 47,000 Workers Worldwide
Image: BAT/Switzerland
This number represents nearly one-fifth of the 47,000 employees the company maintains worldwide.
Goal is to Save £600 Million Per Year by 2028
With the restructuring, the multinational listed on the London Stock Exchange aims to save £600 million per year by 2028, equivalent to approximately €695 million.
According to ND Mais, this amounts to about R$4.3 billion (approximately US$800 million) annually.
Plan adds to previous cut of £500 million
This figure adds to the target of £500 million, or €580 million, that the company had already projected for 2027.
Decline in traditional smoking pressured the decision
The move occurs in response to the ongoing decline in traditional smoking in the markets where the company operates.
This decrease is driven by stricter regulations and increased health awareness, according to the publication.
BAT aims for half of revenue from smoke-free products by 2035
To change the landscape, BAT has set a goal of generating half of its revenue from “smoke-free” products by 2035.
The announced restructuring seeks to reduce operational costs and accelerate this transition to electronic cigarettes and nicotine pouches.
Vuse, Glo, and Velo are the company’s bets
The group’s main bets to achieve this goal are three brands: Vuse, for electronic cigarettes; Glo, for heated tobacco devices; and Velo, for nicotine pouches and sachets.
Factories in the United States are spared from the cuts
The restructuring encompasses BAT’s global operations but spares the United States.
The North American market is the group’s largest individual market and is managed by its subsidiary Reynolds American.
Regulatory hurdles delay launches in the largest market
Despite being spared from the cuts, the United States faces regulatory obstacles.
The rigorous process for approving new nicotine products in the country has delayed launches and restricted sales precisely in the region most strategic for the company.
CEO Tadeu Marroco speaks of a more agile and tech-enabled company
According to BAT’s CEO Tadeu Marroco, the cuts aim to build a more agile, tech-enabled company with strict cost control.
The executive stated that the company will provide support and respect to the affected employees during the process.
Accenture takes over part of the outsourced work
Part of the outsourced work under the new plan will be transferred to the consulting firm Accenture.
Shares fell by about 2.5% on the London Stock Exchange
BAT shares closed down approximately 2.5% on the London Stock Exchange on the day of the announcement.
Barclays and AJ Bell assess the impact of the announcement
Analysts at Barclays noted that the magnitude of the cuts may surprise the market, although the productivity efforts had already been expected.
At AJ Bell, Investment Director Russ Mould warned that the move reflects a strong reliance on technology and serves as a “worrying sign” for the global labor market.
