BAT launches AI-led overhaul affecting 9,000 roles

British American Tobacco (BATS.L) has announced a major restructuring of its global workforce under its Fit2Win productivity transformation programme. The initiative will affect about 9,000 roles worldwide as the group seeks to modernise operations and improve productivity using AI‑driven tools and data analytics.

The company outlined a mix of direct headcount reductions and transfers to external partners. Roughly 5,500 positions are expected to be eliminated, while around 3,500 roles will move to third‑party providers as part of an expanded outsourcing model.

BAT has stated that most of these role changes have already been confirmed with employees. Remaining adjustments are subject to consultations being conducted in line with local information and consultation requirements in the relevant countries.

Fit2Win is designed as an AI‑driven productivity programme that reshapes how the company operates and allocates resources. BAT has linked the job changes directly to this transformation, presenting them as part of a broader effort to streamline processes and upgrade its operating model.

The company is targeting about £600 million of annualised incremental savings from Fit2Win by the end of 2028. Around £500 million of these savings are expected to be achieved by 2027, indicating a phased ramp‑up of cost efficiencies over the next several years.

Management has said the transformation is intended to modernise operations and improve productivity, while enabling the business to reallocate resources more effectively. The initiative is framed around automation, data‑driven decision making and the use of AI to redesign workflows and support functions.

As part of the restructuring, BAT has expanded its use of outsourcing providers and strategic partners. The company has cited partnerships with firms including Accenture (ACN) and has moved various service‑centre and support functions to partner locations across several countries.

Functions have been relocated or outsourced into partner operations in markets such as the UK, Singapore, Costa Rica, Mexico, Poland, Romania and Malaysia. In some countries, including Pakistan, certain activities have been outsourced to local firms as part of the broader shift in operating structure.

BAT also clarified that the restructuring is not in scope for its U.S. business. Employees in the United States are excluded from the current wave of changes under the Fit2Win programme.

The workforce changes represent a significant organisational shift, with thousands of employees either leaving the group or transitioning to third‑party employers. BAT has indicated that it is focused on supporting affected colleagues through the process, as highlighted by CEO Tadeu Marroco.

The company has said that most role changes have already been communicated and agreed with employees. For remaining cases, BAT is conducting formal consultations in line with local legal and regulatory requirements, and has committed to providing further detail to investors as Fit2Win progresses.