British American Tobacco (BAT) has announced a significant global restructuring plan that will result in the elimination of 5,500 jobs.

The London-listed company stated that the workforce reduction is part of a broader cost-saving programme designed to streamline operations and accelerate its strategic shift toward artificial intelligence.

In addition to the direct job cuts, BAT plans to outsource a further 3,500 roles.

The company indicated that this dual approach of reducing headcount and externalizing functions is essential to maintaining competitiveness in a rapidly evolving market landscape.

The move underscores BAT’s commitment to leveraging technology to drive efficiency across its global supply chain and corporate functions.

The restructuring comes as traditional tobacco companies face increasing pressure to diversify revenue streams and reduce operational costs amid declining smoking rates in many developed markets.