Restructuring drive under 'Fit2Win'
British American Tobacco (BTI) announced a major overhaul of its workforce on Monday, with plans to cut around 5,500 international jobs and shift approximately 3,500 roles to partner companies. The move is part of the company's 'Fit2Win' restructuring initiative, launched in 2025, as it seeks to reshape its operations and streamline costs under CEO Tadeu Marroco.
The restructuring is a major part of BAT's strategy to create a more efficient and flexible business structure, with a goal of achieving annual savings of £600 million, or about $792 million, by 2028. The company is relying on partnerships with firms like Accenture, ITC Infotech, and local IT providers in different regions to support this transformation.
Accenture has already taken over specific roles in BAT offices across several countries, including Costa Rica, Mexico, Poland, Romania, and Malaysia. The partnership also includes the U.K. and Singapore, where BAT's supply chain functions are being restructured. In addition, the firm is using Accenture’s expertise in analytics and agentic AI to help its employees develop new skills.
Struggles in a shifting market
The move comes after several years of difficult growth for BAT. Revenue dropped by over 7% between 2022 and 2025 as demand for traditional cigarettes continued to decline. This trend, reported by the World Health Organization, reflects a global shift in consumer behavior, with people becoming more health-conscious and smoking rates falling worldwide.
BAT has also struggled with increased competition from counterfeit and duplicate smoking products that have flooded the market, especially in regions like South Africa. In response, the company recently closed its Heidelberg manufacturing plant, citing an 'unsustainable level of illicit products' as the primary issue.
Despite efforts to raise prices in an attempt to offset lower production volumes, BAT has not been able to reverse its financial downturn. Analysts suggest that long-term changes in consumer preferences and greater awareness of the health risks associated with smoking are the key reasons for the company’s weakened market position.
Stock reaction and retail sentiment
BTI stock dropped nearly 2% in premarket trading as investors reacted to the job cuts and restructuring plans. However, the stock has shown strong performance in the past year, gaining nearly 11% so far in 2025 and over 30% over the last 12 months. It has outperformed the S&P 500 during that time.
Retail investor sentiment on Stocktwits has also shifted from 'bearish' to 'neutral' in the past 24 hours, suggesting that traders are taking a more cautious approach to the stock. BAT has stated its commitment to transformation, emphasizing its focus on creating a 'simpler, faster BAT' through strategic partnerships and the use of advanced technology.
The success of the 'Fit2Win' strategy will depend on how effectively BAT can integrate AI and outsourcing to deliver the promised savings. Investors will be watching closely in the months ahead to see if the company can meet its financial goals and adapt to the evolving market.