British American Tobacco to shed 5,500 jobs in global workforce overhaul

British American Tobacco (BAT) is moving to trim close to one fifth of its staff around the world as it presses ahead with a wide-reaching plan to bring costs down.

The multinational tobacco company will eliminate 5,500 posts and move another 3,500 roles to outside contractors.

BAT stopped short of naming which countries or divisions would bear the brunt of the reductions, though it made clear that its American business would remain outside the scope of the cuts.

Demand for conventional cigarettes has been on the decline, with many consumers moving toward electronic cigarettes and nicotine pouch products instead.

The firm has been steering more of its resources toward so-called reduced-risk options, including the Vuse vaping line and Velo nicotine pouches, in hopes of lifting revenue.

Even so, turnover and margins have lagged across recent reporting periods.