British American Tobacco (BAT) has announced the elimination of 5,500 positions globally as it accelerates its AI-enabled Fit2Win transformation program, according to Sky News. The Fit2Win initiative, launched by the company last year, aims to make BAT more flexible, cost-conscious and innovative.
The London-based group, which owns brands including Lucky Strike cigarettes and Vuse e-cigarettes, said the redundancies form part of the Fit2Win plan. In addition to the 5,500 job cuts, BAT said it will move a further 3,500 roles to strategic partners. Taken together, the changes affect nearly one-fifth of the company’s worldwide workforce, while employees based in the United States are excluded from the measures.
CEO Tadeu Marroco said the company is building an organisation better prepared for future challenges—one that is more aligned with technological demands, more cost-efficient and more agile. He described Fit2Win as central to improving operations and strengthening BAT’s competitiveness in a rapidly changing environment, and noted the firm intends to manage the transition for affected staff with support, care and respect.
BAT said most affected employees have already been notified, though consultations are still ongoing in some cases. The company expects Fit2Win to deliver roughly £600 million in annual savings by the end of 2028 (reported as approximately 246 billion forints).
The announcement follows a wider trend of companies reducing headcount amid AI investments; for example, Oracle cut about 21,000 jobs over the course of a year in connection with AI deployment.
In Hungary, BAT revealed last year plans to open a new centre in Pécs to manufacture smoke-free products. The company’s Hungarian subsidiary was asked about the job cuts; the story will be updated once a substantive response is received.
Why this matters
BAT’s measures illustrate how AI-driven changes can both boost efficiency and prompt significant workforce restructuring in established industries. Firms face the dual challenge of adopting new technologies to remain competitive while addressing the social and employment impacts of such transitions.
