Imperial Brands is preparing to cut thousands of jobs in the United States and Europe as the tobacco company moves ahead with a sweeping cost-cutting and restructuring plan, according to a Bloomberg report.
Shares of the FTSE 100-listed company fell more than 4.5% on Monday following the report. Imperial Brands owns cigarette brands including Winston, Davidoff and Gauloises.
The first wave of job cuts is expected to affect employees at ITG Brands, Imperial Brands’ U.S. subsidiary, which also oversees operations in Puerto Rico and the Dominican Republic. Workers could begin receiving notifications as early as Aug. 19, Bloomberg reported, citing people familiar with the matter.
The planned reductions come as the tobacco industry faces a continued decline in traditional cigarette sales, while companies increase spending on newer products such as vapes and heated tobacco.
The first round of cuts is expected to target employees in human resources, finance, procurement and supply chain roles at ITG Brands. A second phase is expected to affect the unit’s legal, marketing, and insights and intelligence teams, according to Bloomberg.
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Employees affected in the second phase are expected to be notified in April, with the cuts scheduled to begin around the middle of the year. The restructuring could continue into 2027, with some changes potentially extending through April, according to the report.
Imperial Brands has not disclosed how many jobs could be eliminated or provided a detailed breakdown of where the cuts will take place.
Investors reacted sharply to the report. Imperial Brands shares opened at 2,787 pence on Monday before falling to an intraday low of 2,613 pence. The stock later recovered to around 2,664 pence, leaving it down about 127 pence, or 4.55%, from Friday’s close of 2,791 pence.
Trading activity increased as investors assessed the potential impact of the layoffs and restructuring costs. The decline comes as Imperial Brands faces sustained pressure from falling cigarette demand across its core Western markets.
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The restructuring reflects the broader challenges facing tobacco companies as they try to reduce costs while shifting investment toward newer nicotine products, including vaping and heated tobacco.
Imperial Brands is one of the world’s largest tobacco companies, ranking fourth globally by market share and sales volume among international tobacco groups, excluding China National Tobacco. The company ranks behind Philip Morris International, British American Tobacco and Japan Tobacco.
With operations spanning more than 120 countries, Imperial Brands has a broad international footprint and a portfolio that includes major cigarette brands such as Winston, Davidoff and Gauloises. The company also holds a leading position in fine-cut tobacco and tobacco papers, with Rizla among its best-known brands.
That global presence makes the reported restructuring significant, particularly as Imperial Brands looks to control costs while dealing with declining cigarette consumption in Western markets and increasing investment in newer nicotine products.