The company currently employs about 47,000 people globally. It says the cost cuts are expected to save about £600m a year by 2028.
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.
American regulators have taken a tough stance on approving licences for new products such as vapes, delaying launches. BAT says this has fuelled an influx of illegal Chinese products, weighing on its sales and market share.
“The tobacco industry has found the transition from cigarettes to next-generation products to be a slow one, “said Dan Coatsworth, head of markets at AJ Bell.
“Vaping is now commonplace, yet product manufacturers are battling challenging market conditions caused by a proliferation of illegal products.”
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.”
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