# British American Tobacco to cut around 5,500 jobs amid slump in sales and rise in vapes > Source: > Published: 2026-06-29 09:29:46+00:00 # British American Tobacco to cut around 5,500 jobs amid slump in sales and rise in vapes [British American Tobacco](/topic/british-american-tobacco)([BAT](/topic/bat)) announced plans to reduce its global[workforce](/topic/workforce)by approximately 20% as part of an AI-driven transformation programme.- The restructuring involves cutting 5,500 jobs and outsourcing a further 3,500 roles, impacting a total of 9,000 employees, with the US market excluded from these changes. - This initiative aims to generate £600 million in annualised incremental [savings](/topic/savings)by 2028, with £500 million targeted by 2027, to bolster profits and improve agility. - The move addresses the Lucky Strike and Dunhill maker's sluggish sales and profit growth, the decline in traditional tobacco, and challenges in its new categories like vapes and nicotine pouches. - CEO Tadeu Marroco stated the changes are intended to make the company more agile, cost-disciplined, and technology-enabled, while ensuring support for affected colleagues.