British American Tobacco announced plans to reduce its workforce by about 20% as part of a wider AI-driven transformation programme aimed at lowering costs and improving profitability.
The company said it will eliminate 5,500 jobs and transfer another 3,500 roles to third-party firms, affecting a total of 9,000 employees.
The restructuring excludes the United States, the company's largest market.
BAT said most of the affected employees have already been informed, with the remaining consultations continuing in line with local requirements.
The company said the programme is expected to generate £600 million in annualised incremental savings by 2028, with £500 million already targeted by 2027.
Chief Executive Tadeu Marroco said the changes are intended to create a business that is more agile, cost-disciplined and technology-enabled.
He added: "These changes affect many of our colleagues and we are focused on supporting them through this transition with care and respect."
BAT has previously indicated that its productivity programme could result in job reductions and has increasingly focused on digital and AI initiatives, including outsourcing work to Accenture.
Some roles in the UK, Poland, Romania, Costa Rica, Mexico, Singapore and Malaysia have already been transferred following that partnership.
The restructuring comes as BAT faces slowing sales and profit growth alongside continued declines in demand for traditional tobacco products.
The company expects global cigarette industry volumes to fall by about 2.5% this year while continuing to shift investment toward products such as Vuse vapes and Velo nicotine pouches.
Its business has also been affected by regulatory challenges that have delayed product launches in the United States, while competition from lower-cost and illicit products has weighed on performance in several markets, including Australia and Bangladesh.
BAT also recently announced the closure of a cigarette manufacturing facility in South Africa, citing competition from illicit trade.
Analyst Pallav Mittal of Barclays said the scale of the broad-based workforce reductions could surprise investors.
The company's shares were down 1.3% following the announcement.