Almost certainly yes, at least temporarily. Getting caught with tobacco in a facility where it is prohibited is treated as a contraband infraction, and work release is a privilege that gets pulled when an inmate demonstrates they are not following the rules. The whole premise of a work release program is that the facility trusts the inmate enough to send them outside the walls. A contraband write-up puts that trust directly in question.
How long he stays in the hole is the harder question to answer, because there is no fixed schedule for punitive segregation stays. It comes down to the lieutenant who wrote the incident report. That officer has significant discretion over the recommended punishment, and the severity of how they view the infraction shapes the outcome. Tobacco is not in the same category as drugs or weapons, which works in his favor, but it is still a deliberate rule violation that got him pulled from a privileged program. A few days to a few weeks in the SHU is a reasonable range to expect.
What happens to his work release status after he gets out of the hole is a separate decision. Some facilities will reinstate work release after a clean stretch back in general population. Others will pull the privilege for the remainder of the sentence once it has been revoked. That call typically sits with his case manager or the program administrator, and his behavior from this point forward will factor into it.
The best thing he can do right now is keep his head down, accept the consequence without making it worse, and make a clean record from here on out.
One thing worth knowing: facilities have seen enough tobacco infractions to understand that nicotine addiction is real, and inmates who get caught are sometimes given more leeway than the rulebook suggests, particularly for a first offense. What seldom happens is cooperation with staff about where the tobacco came from. Inmates do not give up suppliers, and there is a practical reason for that beyond loyalty. The person supplying tobacco inside is almost always one step removed from a corrections officer. Everyone in that chain knows it, and the circle stays intact because exposing it would create problems that go well beyond one inmate's write-up.