British American Tobacco (BAT), headquartered in London and owner of brands including Lucky Strike and Vuse, will eliminate 5,500 jobs worldwide as it accelerates a transformation driven by artificial intelligence, Sky News reported. The reductions are part of the Fit2Win programme, launched last year to make the company more flexible, cost-conscious and innovative.
In addition to the 5,500 job cuts, BAT said it will transfer a further 3,500 roles to strategic partners. Globally, the changes affect roughly one-fifth of the company’s workforce; employees in the United States are exempt from the measures.
Chief Executive Officer Tadeu Marroco said the company is building an organisation prepared for future challenges that aligns with technological needs and operates more quickly. He described Fit2Win as central to improving operations and strengthening competitiveness, and said the company will seek to manage the impact on employees "with care and respect." "Whether through strategic partnerships or a more targeted operating model, we will create a simpler, faster BAT," he added.
BAT has informed most of the employees affected by the changes, though consultations are still ongoing in some cases. The company expects the Fit2Win programme to deliver roughly £600 million in annual savings by the end of 2028 (around 246 billion forints, according to BAT's figure).
The announcement follows a wider trend of workforce reductions associated with increased AI investment across industries; for example, Oracle cut about 21,000 jobs in a year amid its own AI-driven restructuring.
In Hungary, BAT revealed last year plans to open a new centre in Pécs to manufacture smoke-free products. BAT’s Hungarian subsidiary was contacted about the current cuts, and the outlet says it will report further once it receives a substantive response.
Why this matters
BAT’s restructuring shows that large consumer-goods companies are increasingly reshaping their organisations around technology and cost-efficiency goals. The Fit2Win measures are presented by the company as part of a longer-term strategy to reduce costs and boost competitiveness.
Next steps
BAT continues consultations with affected staff and says it will implement support measures during the transition. Detailed timelines and regional impacts are expected to be disclosed in further company communications.
