Tobacco giant Philip Morris will cut 150 jobs as part of a major restructure that will slash its Australian workforce by about a third.

Workers at Philip Morris were told of the redundancies on Tuesday morning, and it is understood the company's sales staff will be the most affected.

Cigarette company Philip Morris is scaling back its Australian sales operations. Credit:Nic Walker

Philip Morris' managing director in Australia, Tammy Chan, said digital technological developments had changed the retail landscape and led to more efficient ways for the company to interact with its retailers.

"This decision was taken only after a rigorous assessment of the current operating environment in Australia," Ms Chan said.