The company will trim its workforce by 20 percent to reduce costs. This means that 5,500 positions will be eliminated and 3,500 employees will be transferred to external suppliers.
The cuts are to be implemented before the end of the year.
The tobacco giant, which owns the Lucky Strike and Dunhill brands, has had weak sales growth in recent years.
The company's main profit engine - traditional tobacco products - is in long-term decline, according to the AFP news agency.
