British American Tobacco to Eliminate 9,000 Positions Amidst Global Cigarette Decline
British American Tobacco (BAT) has announced plans to cut 9,000 jobs worldwide by January 2025. This reduction, representing approximately 20% of the company's global workforce, is a direct consequence of the declining demand for conventional cigarettes, a trend impacting the entire tobacco industry.
The multinational corporation, which owns brands such as Dunhill and Lucky Strike, stated that the redundancies would primarily affect management and back-office roles. A spokesperson confirmed that the UK, where BAT employs over 2,000 individuals, would see a substantial number of these job losses, although specific figures for the UK were not immediately available.
This restructuring aims to streamline operations and reallocate resources towards what BAT terms 'new categories' – products like vapes, e-cigarettes, and heated tobacco. The company's strategic shift comes as regulatory pressures and public health campaigns continue to erode the market for traditional tobacco products in Western nations. While some of these 'new categories' are also facing increased regulatory scrutiny, particularly in the United States, BAT is banking on their growth potential to offset losses from its core cigarette business.
Chief Executive Tadeu Marroco acknowledged the necessity of these difficult decisions to future-proof the business, stating the company needed to become "leaner and faster." This move underscores the significant challenges facing established tobacco firms as they attempt to adapt to evolving consumer preferences and a global health landscape increasingly hostile to combustible tobacco products.
