British American Tobacco chopping 9,000 jobs to slash prices

British American Tobacco has said it is cutting its workforce by 9,000 as part of efforts to sharply cut costs.

The tobacco giant, which makes Dunhill and Lucky Strike, is cutting 5,500 jobs directly and will outsource a further 3,500 jobs to partner businesses.

It said the cuts are part of a major overhaul designed to helped save the group £600 million a year by 2028.

The job cuts, the majority of which have already taken place, are set to be completed by the end of the year.

It is understood that the job cuts will include some roles in the UK, but are spread across a variety of markets, excluding the US.

Around 3,500 roles are being moved from the company to strategic partner firms, such as Accenture.

These include certain roles from the company’s supply network operations in the UK and Singapore.

The restructuring is part of the “Fit2Win” cost-saving strategy launched by BAT last year to make the firm more “agile, cost disciplined and innovative”.

BAT said its changes are “already delivering”, reporting improved operational efficiencies across its markets.

Tadeu Marroco, chief executive of BAT, said: “We are building a future-ready organisation that is more agile, cost disciplined and technology enabled.

“These changes affect many of our colleagues, and we are focused on supporting them through this transition with care and respect, as we position the business for the future.”

Shares in the group were down 1.6% at 4,674p on Monday morning.