London, June 29, 2026, 10:01 BST
- London was open at the dateline, with the London Stock Exchange trading from 0800 to 1630 BST weekdays.
- British American Tobacco traded at 4,674p, down 1.62% on delayed print as of 10:01 a.m. in London.
- BAT said Fit2Win aims to cut around 5,500 jobs and transfer about 3,500 jobs to partners. The U.S. is not included.
- BAT’s £600 million annual savings goal breaks down to £66,700 for each role impacted. Shares dropped in the morning, erasing around £1.6 billion in market value by a basic market-cap estimate.
British American Tobacco p.l.c. (LON:BATS) dropped in London on Monday after the company announced a 9,000-job reorganisation linked to its Fit2Win programme, which is targeting roughly £600 million in yearly savings by 2028. The selloff made clear market skepticism, with losses from the first move bigger than two years’ worth of projected annual savings.
BAT traded at 4,674p, off 77p, or 1.62%, as of 10:01 a.m. in London, according to Davy. Shares moved between 4,661p and 4,743p so far. AJ Bell put its market cap at £101.08 billion, with a 5.43% dividend yield and a P/E of 12.74.
| Stock | Quote | Day move | Open | Previous close | Market cap |
|---|---|---|---|---|---|
| British American Tobacco (LON:BATS) | 4,673p/4,674p | fell 1.62% | opened at 4,736p | closed last at 4,751p | £101.08 bln |
| Imperial Brands PLC (LON:IMB) | 2,742p/2,744p | down 1.37% | opened at 2,777p | previous close was 2,780p | £21.08 bln |
Imperial Brands slipped, with tobacco names under pressure, but BAT lost more. Hargreaves Lansdown said the FTSE 100 (INDEXFTSE:UKX) was off 0.17% during the stretch, putting BAT about 1.45 points behind the index.
| BAT cost-plan math | Figure |
|---|---|
| Jobs cut | c.5,500 |
| Jobs shifting to partners | c.3,500 |
| Total roles impacted | c.9,000 |
| Yearly savings goal for 2028 | c.£600 mln |
| Average savings per role | c.£66,700 |
| Market cap used for calculation | £101.08 bln |
| Share price swing of 1.62% equals | c.£1.64 bln |
| Change in market value / annual target | c.2.7x |
BAT said it launched Fit2Win in 2025, aiming to reduce complexity and lean on partnerships. Some jobs have shifted to Accenture NYSE:ACN, according to the company, and ITC Infotech is taking on information, digital and tech positions in Poland and Romania.
Chief Executive Tadeu Marroco said BAT was building “a simpler, faster BAT” and noted “these changes affect many of our colleagues.” BAT said most of the changes are now set with employees, and the last consultations are going on to meet local rules. BAT
Barclays PLC (LON:BARC) analyst Pallav Mittal said in a note that the size of the “broad-based” cuts might catch investors off guard, Reuters reported. Reuters also noted the restructuring leaves out the United States, BAT’s top market. Reuters
The cost target doesn’t clear up the 2026 outlook. In a June 2 pre-close update, BAT stuck with its view that 2026 would land at the lower end of its medium-term goals—revenue up 3%–5%, adjusted profit from operations rising 4%–6%, and adjusted diluted EPS up 5%–8%. BAT expects New Category revenue to grow in the mid-teens both for the first half and the year, and has buybacks set for £1.3 billion in 2026.
This is why the shares are moving. Investors have to decide how to value a cost program that delivers all savings by 2028, but management is sticking with a group growth outlook at the bottom of the range this year. The payback looks good on paper, but the early stock reaction shows the market wants evidence that savings turn into earnings and cash, not just more money spent on Vuse, Velo or other New Category brands.
U.S. regulation is now another moving part in BAT’s new-products plan. On June 26, the U.S. Food and Drug Administration dropped a proposal to force both foreign and U.S. tobacco-product makers to register and list their products. Reuters reported the proposal could hit names like British American Tobacco, Japan Tobacco Inc. (TYO:2914), Imperial Brands, along with smaller foreign e-cigarette outfits sending to the U.S.
BAT has set a closed-period share buyback that will run from June 30 until July 29, just ahead of its half-year prelims. Shares bought back during this stretch will be cancelled as part of the current programme.
