British American Tobacco (BAT) is cutting 9,000 jobs as part of a major cost-cutting restructuring, according to a Reuters report published June 29, 2026. The layoffs represent approximately 15% of the company's global workforce, which stood at around 60,000 employees before the announcement.
Restructuring details
The job cuts are part of a broader efficiency drive aimed at reducing costs and streamlining operations. BAT, one of the world's largest tobacco companies, has been facing declining cigarette sales in many markets due to increased regulation and shifting consumer preferences toward reduced-risk products.
The company said the restructuring will help it focus on its "New Categories" portfolio, which includes vaping, heated tobacco, and oral nicotine products. BAT has invested heavily in these alternatives to traditional cigarettes in recent years.
Market context
The announcement comes amid a challenging environment for the tobacco industry. Global cigarette volumes have been declining, and regulatory pressures continue to mount. BAT reported that its New Categories revenue grew 26% in the first half of 2025, but the overall business still relies heavily on combustible tobacco.
According to a company spokesperson, "This restructuring is necessary to ensure we remain competitive and can continue to invest in our future growth areas." The layoffs will occur over the next two years, with the majority expected in the first year.
Impact on operations
The job cuts will affect all regions and functions, with the largest reductions expected in manufacturing and administrative roles. BAT operates in over 180 countries, and the company said it will consult with employee representatives and unions in each jurisdiction.
The restructuring is expected to generate annual savings of approximately £1.5 billion by 2028, according to the Reuters report. BAT plans to reinvest some of these savings into its New Categories business and digital transformation initiatives.
