BAT Leans On ITC Infotech Amid Tech-Led Overhaul
British American Tobacco is cutting thousands of jobs and outsourcing more roles under a technology-led restructuring that will also expand its India operations through a new capability center with ITC Infotech.
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British American Tobacco p.l.c. (BAT) will cut about 5,500 jobs and move another 3,500 roles to outside partners as part of a technology-led restructuring that includes a new India capability center with ITC Infotech, a wholly owned subsidiary of ITC Ltd.
The London-listed maker of Dunhill, Lucky Strike, Vuse and Velo said its Fit2Win program remains on track to deliver about £600 million in annual cost savings by the end of 2028.
The restructuring will affect about 9,000 roles, or nearly a fifth of BAT’s workforce, and will exclude the US, its largest market.
BAT said service hub roles in Costa Rica, Mexico, Poland, Romania and Malaysia, along with supply network operations in the UK and Singapore, have moved to Accenture.
Some roles in Pakistan have moved to Systems Ltd, while digital and technology roles in Poland and Romania are being transferred to ITC Infotech.
The company has also expanded its partnership with ITC Infotech to set up a BAT Future Capabilities Centre in India, adding to existing technology hubs in Malaysia and Mexico.
The center will support BAT’s digital, innovation and technology operations as the group leans more heavily on automation, data and artificial intelligence.
The overhaul comes as BAT tries to protect profits while cigarette volumes decline and the tobacco industry shifts more money into smoke-free products.
BAT has been investing in alternatives such as Vuse vapes, Glo heated tobacco products and Velo nicotine pouches as demand for traditional cigarettes weakens in several markets.
Chief Executive Officer Tadeu Marroco said BAT was building a “more agile, cost disciplined and technology enabled” company.
“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,” Marroco said.
BAT had signaled earlier this year that AI and data analytics would affect staffing levels.
The restructuring follows a broader review of BAT’s operating footprint. The company said it has consolidated its factory network over the past 18 to 24 months, including the previously announced closure of its Heidelberg factory in South Africa, where it cited the scale of illicit products in the market.
India is also important to BAT through its long association with ITC Ltd. BAT’s holding in ITC stood at about 22.93% at 30 June 2025 after it sold a 2.5% stake. It later sold part of its holding in ITC Hotels while retaining a 6.3% stake.
BAT said most role changes have now been confirmed with employees, with remaining consultations continuing under local requirements.
