British American Tobacco P.l.c.LSE: BATS

Creating a stronger BAT through Fit2Win transformation programme

· Issued by British American Tobacco P.l.c.
  • Fit2Win on track to deliver our previously announced c.£600 million in annual cost savings by 2028
  • Strategic partnerships are transforming operations, with roles transitioning to partners as BAT simplifies
  • Operational changes progress as planned, including manufacturing footprint optimisation and reorganisation

BAT's Fit2Win transformation programme continues to strengthen the business and position the company for long-term sustainable growth.

Fit2Win, launched in 2025, is designed to make the Group more agile, cost disciplined and innovative.

The Fit2Win programme is reshaping how BAT operates by reducing complexity, building closer partnerships with leading technology and business services companies, whilst streamlining the business.

Fit2Win is expected to deliver c.£600 million in annual cost savings by the end of 2028.

Tadeu Marroco, Chief Executive of BAT, said:

"We are building a future-ready organisation that is more agile, cost disciplined and technology enabled.

"Fit2Win is central to this ambition, strengthening how we operate and our ability to compete in a rapidly evolving environment.

"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.

"Whether through strategic partnerships or a more focused operational footprint, we are creating a simpler, faster BAT."

These actions are already delivering, from improved operational efficiencies to faster decision-making and increased alignment across the Group's markets.

Partnering for Success

Central to the Fit2Win programme are the Group's strategic partnerships with world leading technology and business services companies. This reflects BAT's broader strategy of partnering with innovative, global leaders.

In July 2025, BAT entered into a strategic partnership with Accenture, bringing together digital capabilities and global expertise to simplify processes, improve speed to market, and strengthen compliance agility across the Group's operations.

As part of this partnership, certain roles across BAT's Global Service Hubs in Costa Rica, Mexico, Poland, Romania and Malaysia, and Supply Network Operations in the UK and Singapore have transitioned to Accenture. In addition, a select group of roles in Pakistan have transitioned to Systems Ltd., a Pakistani technology and business services firm1.

BAT has also expanded its partnership with ITC Infotech (ITCI), currently transferring relevant Information, Digital and Technology (IDT) roles in Poland and Romania to ITCI.

Additionally, BAT and ITCI will collaborate on the newly launched BAT Future Capabilities Centre in India, alongside supporting BAT's existing technology hubs in Malaysia and Mexico, strengthening digital capabilities, innovation and agility across BAT's technology operations.

Streamlining operations

As part of a wider review of its manufacturing footprint, BAT has consolidated its factory network over the past 18-24 months. This includes the previously announced closure of Heidelberg factory in South Africa, primarily due to the unsustainable level of illicit products that now dominate the market.

Managing change responsibly

BAT is committed to managing this reorganisation responsibly and carefully. As previously announced, Fit2Win includes a reduction in roles across the Group as it simplifies structures and transitions work to its key strategic partners¹. These changes do not impact the U.S. which is not in scope.

Most changes have now been confirmed with employees1. Those consultations that remain are being carried out in compliance with local information and consultation requirements.

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