BAT’s German operations include a Hamburg-led business and a Bamberg factory for roll-your-own and machine-made tobacco; specifics on affected German staff remain unclear.

BAT will cut 5,500 jobs globally and outsource 3,500 roles as part of an AI-led restructuring aimed at slashing costs and sharpening technology focus.

The plan targets about 695 million euros in annual savings by 2028, with a broader push to automate and streamline operations across markets.

Shares slipped roughly 1.6% after the announcement, reflecting cautious investor sentiment toward the scale of the restructuring.

The moves align with a broader industry shift toward alternative nicotine products amid tighter regulations and changing consumer preferences.

Shares fell about 2% on the news, with analysts cautioning that further actions may be needed to hit profitability targets.

High living costs, rising duties, and stricter regulations in key markets are cited as headwinds driving the push for cost efficiency and strategic pivots.

BAT emphasizes balancing ongoing cost savings with continued investment in next-generation nicotine products to sustain long-term growth.

US operations are not included in the restructuring, with most role changes already confirmed and remaining consultations proceeding as required by local laws.

Regulatory hurdles and delays in launching new nicotine products are weighing on BAT’s performance and shaping the strategy behind the restructuring.

The stock reaction underscores investor caution about immediate risks from a large-scale overhaul, even as long-term cost savings are anticipated.

Peers like Philip Morris International and Imperial Brands faced similar cautious sentiment amid a tougher market environment.