British American Tobacco will cut 9,000 jobs due to the introduction of AI

The decision was made as part of a business modernization program aimed at reducing costs and more active implementation of digital technologies and artificial intelligence. BAT estimates the measures will save around £600 million annually by 2028.

Company CEO Tadeu Marroco said BAT is committed to becoming more flexible, technologically advanced and efficient. At the same time, he emphasized that the company intends to provide support to employees who will be affected by the layoffs.

The cuts will not affect BAT’s US division, where the company operates through its Reynolds American subsidiary. Some functions have already been transferred to the consulting company Accenture, which provides BAT with solutions based on artificial intelligence. The restructuring comes amid declining global demand for traditional cigarettes. The company expects the tobacco market to decline by about 2.5% this year, so it is betting on smokeless nicotine products such as Vuse e-cigarettes and Velo nicotine pods, sales of which continue to grow. Shares of BAT and rival Imperial Brands fell slightly after the cuts were announced.