BAT cuts 9,000 roles in global overhaul, shares trade lower in London

By Thomas Klein, Operations & Strategy desk. Reviewed prior to publication on 2026-06-29, 10:35.

BAT (GB0002875804) has launched a far-reaching restructuring drive, removing or outsourcing 9,000 jobs worldwide as part of a multi-year cost-cutting and simplification program, according to Bloomberg and the Financial Times. The maker of Dunhill cigarettes, listed on the London Stock Exchange, is targeting hundreds of millions of pounds in additional annual savings through 2028 as the overhaul gathers pace.

What the restructuring involves

British American Tobacco plans to cut around 9,000 positions globally, equal to nearly one-fifth of its roughly 47,000-strong workforce outside the United States, in one of its largest restructuring efforts in recent years.

According to an internal notice cited by Bloomberg, about 5,500 jobs will be removed entirely, while another 3,500 roles will be outsourced to external partners by the end of this year, with the U.S. business operated through Reynolds American Inc. excluded from the program.

Cost savings and strategic focus

The restructuring is designed to generate around £600 million in additional annual savings by 2028, on top of a previously communicated £500 million cost-reduction target by 2027, significantly lifting BAT’s medium-term efficiency ambitions.

Market reports highlight that BAT aims to simplify operations and reallocate resources toward smoke-free products such as vaping devices and nicotine pouches, reflecting the group’s long-term strategy to adapt to declining traditional cigarette consumption.

The business behind the restructuring

BAT generates most of its cash flow from combustible tobacco brands including Dunhill, Lucky Strike and Rothmans, but has stepped up investment into newer segments such as vapour, heated tobacco and modern oral nicotine to diversify its revenue base.

The workforce reduction and outsourcing push sit alongside digital and AI-driven operational changes, as highlighted by market commentary noting that new technology and external partnerships are expected to support the group’s efficiency drive.

Where the BAT shares trade today

BAT shares (GB0002875804) last traded at about 4,751 pence on the London Stock Exchange, as of 2026-06-29, 08:08, according to a Davy quote, implying a modest intraday decline compared with recent levels while the restructuring news is being digested by investors.

This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or any other form of financial guidance.