British American Tobacco will eliminate nearly 20% of its global workforce as the company removes or outsources 9,000 jobs to streamline operations and reduce costs. The cigarette maker, which employs approximately 47,000 people worldwide, aims to achieve annual savings of £600mn by 2028.

The restructuring affects all non-US employees, with 5,500 positions slated for removal and another 3,500 roles to be outsourced. This initiative builds on BAT's previously announced transformation program as traditional tobacco sales decline globally. The company has already shifted some operations to Accenture and a Pakistani IT firm.

Chief executive Tadeu Marroco emphasized the need to make BAT more agile and technology-enabled while transitioning to smoke-free products. He acknowledged the difficulty of the changes for affected colleagues but positioned them as necessary for long-term positioning.

Shares slipped 1.5% in early London trading despite the stock's 35% gain over the past year, lifting the group's market capitalization above £100bn. The cuts reflect broader industry pressure as cigarette demand wanes and companies pivot toward reduced-risk alternatives.