British American Tobacco Cuts 9,000 Jobs in Pivot to Smokeless Nicotine British American Tobacco slashes 20% of its workforce as traditional cigarette sales hit historic lows.

British American Tobacco (BAT) has announced plans to eliminate 20% of its global workforce as part of a sweeping restructuring plan to transition away from traditional cigarettes. This major operational shift occurs amid historic declines in global smoking rates, forcing the tobacco giant to aggressively reallocate resources toward next-generation nicotine products.

The job cuts will affect approximately 9,000 positions by the end of this year, consisting of 5,500 direct layoffs and 3,500 outsourced roles. BAT expects these measures – which exclude its US-based subsidiary, Reynolds American – to generate $793 million in annual savings by 2028. Chief Executive Tadeu Marroco stated the company is building a “future-ready” and “technology-enabled” organization, leveraging advanced AI solutions in partnership with Accenture to streamline operations.

This corporate downsizing is directly tied to shifting consumer habits. A study published in The New England Journal of Medicine revealed that adult cigarette use in the US hit an all-time low in 2024. Conversely, the World Health Organization reported that global nicotine pouch sales surged by more than 50% over the same period.

To capture this evolving market, BAT is heavily investing in its Vuse vapes and Velo nicotine pouches. However, public health experts warn that these alternative products, particularly high-strength pouches, can build nicotine tolerance rapidly and may prove even more addictive than traditional cigarettes.