British American Tobacco (BAT) has announced plans to cut 5,500 jobs worldwide and outsource another 3,500 roles as part of a major restructuring aimed at reducing costs.
The company, which manufactures Lucky Strike and Dunhill cigarettes, said the move is expected to save £600 million ($792 million) annually by 2028 and will affect about 20 percent of its 47,000-strong global workforce.
BAT said the job cuts will apply across its global operations, excluding the United States, where its business is managed through Reynolds American.
Chief Executive Tadeu Marroco said the restructuring is designed to build a more agile, technology-driven and cost-efficient organisation, adding that affected employees would be supported throughout the transition.
The company has been shifting its focus from traditional cigarettes to alternative nicotine products such as vapes and oral nicotine pouches amid declining cigarette demand.
Following the announcement, BAT shares fell 1.5 percent on the London Stock Exchange. Investment analysts said the move reflects a growing trend among major companies to use technology to improve efficiency while reducing workforce costs.