Creating a stronger BAT through Fit2Win transformation programme

PRESS RELEASE

29 JUNE 2026

Creating a stronger BAT through Fit2Win transformation programme

  • 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.

Enquiries

 

Media Centre
press_office@bat.com | @BATplc

Investor Relations
Victoria Buxton: | IR_team@bat.com

Notes

  1. By the end of the year, we expect these changes to have resulted in a reduction of circa 5,500 roles globally, excluding the U.S. which is not in scope. In addition, around 3,500 roles have moved to strategic partners.

Forward-looking statements

This release contains certain forward-looking statements, including “forward-looking” statements made within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are often, but not always, made through the use of words or phrases such as “believe,” “anticipate,” “could,” “may,” “would,” “should,” “intend,” “plan,” “potential,” “predict,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “outlook,” “target,” “being confident” and similar expressions. These include statements regarding our intentions, beliefs or current expectations concerning, amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business circumstances occurring from time to time in the countries and markets in which the Group operates. In particular, these forward-looking statements include, among other statements, statements regarding our expectations regarding Fit2Win annual cost savings and the application of those savings and delivery of our 2026 full-year guidance.

AAll such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed that the expectations reflected in this release are reasonable but they may be affected by a wide range of variables that could cause actual results to differ materially from those currently anticipated. A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within forward-looking statements can be found by referring to the information contained under the headings “Forward looking statements” and “Key Information – Risk Factors” in the 2025 Annual Report on Form 20-F of BAT.

Additional information concerning these and other factors can be found in BAT’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the 2025 Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained free of charge at the SEC’s website, www.sec.gov and BAT’s Annual Reports, which may be obtained free of charge from the BAT website www.bat.com.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. The forward-looking statements reflect knowledge and information available at the date of preparation of this release and BAT undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.