British American Tobacco slashes 5,500 jobs in €695m restructuring push

The tobacco giant is outsourcing 3,500 additional roles as it accelerates its pivot to smoke-free products, aiming to streamline operations amid shifting consumer demand.

By Handelsavisen Newsroom · Automated 2026-06-29 13:12 UTC · 1 min read

British American Tobacco (BAT) has announced a major global restructuring program that will eliminate 5,500 jobs worldwide.

The London-listed company, known for brands such as Lucky Strike and Dunhill, stated that the overhaul is part of a broader cost-reduction initiative expected to save €695 million.

The move represents a significant contraction of the company’s headcount, with the total reduction accounting for roughly 20% of BAT’s global workforce.

In addition to the direct job cuts, BAT plans to outsource approximately 3,500 positions to external contractors, effectively reducing its internal workforce by a combined 9,000 roles.

The move represents a significant contraction of the company’s headcount, with the total reduction accounting for roughly 20% of BAT’s global workforce.

This aggressive downsizing underscores the urgency of the company’s strategic shift away from traditional combustible cigarettes toward smoke-free alternatives, including vapes and nicotine pouches.

By streamlining its operational footprint, BAT aims to reallocate capital toward higher-growth segments in the evolving nicotine market.