British American Tobacco to slash 9,000 jobs as it turns to AI

British American Tobacco (BAT) will cut about a fifth of its 47,000-strong workforce this year, as the cigarette-maker looks for ways to push down costs and become more “technology enabled”. BAT, which is one of the biggest tobacco groups in the world , has announced it will cut 5,500 jobs by the end of the year and outsource a further 3,500, affecting a ⁠total of 9,000 employees. The FTSE 100 company is grappling with falling demand for traditional cigarettes and pressure to invest in nicotine alternatives. The company said the cuts were part of a “transformation programme” expected to create £600m of annual cost savings by the end of 2028. The BAT chief executive, Tadeu Marroco, said the company was “building a future-ready organisation that is more agile, cost disciplined and technology enabled”. “These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we position the business for the future,” he said. There will be no cuts in its business in the US, where it operates under its subsidiary Reynolds American. Last year BAT partnered with the technology consultancy Accenture to outsource some of its work, which Marroco said at the time would give the company access to its “advanced AI solutions”. Some jobs in the UK, Poland, Romania, Costa Rica, Mexico, Singapore and Malaysia have been absorbed by Accenture since the deal, BAT said. …