British American Tobacco announced it will eliminate about 9,000 positions, roughly one fifth of its global workforce, and outsource an additional 3,500 roles, with the cuts expected to be completed by the end of the year. The company, which employs roughly 47,000 people worldwide and produces brands such as Lucky Strike and Dunhill, said the reductions are part of a cost‑saving programme aimed at accelerating its shift toward digital and AI‑focused operations and newer smoking‑alternative products. BAT reported that traditional cigarette sales have been declining as consumers move to vaping and nicotine‑pouch products; the firm is investing in Vuse vapes and Velo pouches, but overall sales and profit margins have remained weak. In the United States, its largest market, sales have been pressured by higher living costs and competition from lower‑priced brands. The company also faces increased duties and stricter regulations, and U.S. regulators have delayed approvals for new vaping products, contributing to a rise in illegal imports that affect its market share. Dan Coatsworth, head of markets at AJ Bell, noted that the transition from cigarettes to next‑generation products is slow, and manufacturers are confronting market conditions shaped by a proliferation of illicit products. Chief executive Tadeu Marroco said the cuts are intended to make the company more agile, cost disciplined and technology enabled, and that the firm will support affected employees through the transition. The job cuts are projected to generate annual savings of about £600 million by 2028.