British American Tobacco plans to cut around 9,000 jobs this year, including layoffs and outsourcing, as part of a major cost-cutting and restructuring effort.

The company says the changes are aimed at becoming more “technology-enabled” and could deliver £600 million in annual savings by 2028.

BAT is facing declining demand for traditional cigarettes and is increasingly investing in smoke-free products like vapes and nicotine pouches.

It is also outsourcing work to technology firms and shifting toward more digital and AI-focused operations, The Guardian has reported.

The company says the restructuring will help it become more agile as it adapts to a shrinking cigarette market and growing alternative nicotine demand.