BAT to Cut 5,500 Jobs Globally in Cost-Saving Move

British American Tobacco (BAT) announced on Monday that it will cut 5,500 jobs globally as part of a restructuring initiative aimed at reducing costs. The company plans to outsource 3,500 roles, which is expected to help save £600 million (approximately $792 million) by the year 2028.

This restructuring will impact around 20% of BAT's workforce, which totals 47,000 employees. The statement from BAT indicated that the company, along with other major tobacco firms, is facing a decline in demand for traditional cigarettes and is shifting its focus towards newer categories, including vaping and oral nicotine products.

Chief Executive Tadeu Marroco emphasized the need for the organization to be agile and cost-disciplined, leveraging technology to enable smoother operations and faster product launches. The job cuts will span BAT's global workforce but will not affect its operations in the United States, where it runs its subsidiary, Reynolds American.

Following the announcement, BAT's share price fell by 1.5% on the London Stock Exchange.