British American Tobacco (BAT) is to cut nearly a fifth of its global workforce as part of a major cost-cutting drive.
The company, which makes Lucky Strike and Dunhill cigarettes, is cutting 5,500 roles and outsourcing 3,500 more.
BAT did not say where the jobs being cut were located, but added that the US was not affected.
The cost-cutting programme is expected to save about £600m a year by 2028, it added.
The tobacco giant, which currently employs 47,000 people globally, had previously announced a savings drive that would involve making it “more digital and AI-focused”.
Traditional cigarette sales are shrinking as smokers increasingly switch to vapes and nicotine pouches.
BAT is shifting its focus to smoking alternatives such as its Vuse vapes and Velo nicotine pouches to drive growth, but its sales and profit margins have been sluggish in recent years.
Sales in the US — its biggest market — have also been hit by the cost of living, as smokers swap for cheaper brands.
Additionally, the company is battling rising duties and stricter regulations in some markets.
BAT said the job cuts, which have already started, are set to be completed by the end of this year.
Chief executive Tadeu Marroco said the cuts would make the company “more agile, cost disciplined and technology enabled”.
“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.”
