Imperial Brands plans major job cuts

Imperial Brands is preparing to cut thousands of jobs across key markets, including the United States and Europe, in a broad cost-cutting initiative. The move represents a significant restructuring for the tobacco group, which had about 25,800 employees worldwide at the end of 2025. The company has indicated that the changes will affect its global market footprint, though it has not disclosed the exact number of positions to be eliminated. The plans reflect a coordinated effort to streamline operations in several major regions at the same time.

A company spokesperson has confirmed that the changes will have an impact across the group’s global operations but has declined to provide specific figures on job reductions. This leaves the precise scale of the restructuring unclear, beyond the indication that thousands of roles will be affected. The restructuring is concentrated in key markets, underscoring the importance of these regions to the group’s cost base and organizational structure.

The first wave of layoffs will be concentrated at ITG Brands, Imperial Brands’ subsidiary that covers the United States, the Dominican Republic and Puerto Rico. Within ITG Brands, initial cuts will focus on staff working in human resources, finance, procurement and supply chain. These functions are central to the subsidiary’s support and logistics operations, indicating that the restructuring is aimed at back-office and operational roles rather than being limited to a single business unit.

In addition to direct job cuts, Imperial Brands plans to outsource some ITG Brands positions to Capgemini SE before the end of the year. This outsourcing step forms part of the broader reorganization, shifting certain roles from in-house teams to an external strategic partner. The combination of layoffs and outsourcing suggests that ITG Brands will emerge from the process with a leaner internal structure and a different operating model for selected support functions.

Imperial Brands has been in contact with relevant European Union bodies regarding the planned redundancies. These job cuts in Europe are subject to consultation, in line with regulatory and labor requirements in EU jurisdictions. The engagement with EU authorities underscores that the restructuring extends beyond the US-focused ITG Brands and involves workforce changes in European operations as well.

The consultation process means that some aspects of the European job cuts may evolve as discussions proceed. However, the group’s communication with EU bodies confirms that the restructuring is expected to have a material impact on staff levels in those markets. This adds a regulatory and labor-relations dimension to the restructuring alongside the operational and financial objectives.

Financial markets reacted negatively to the news of the planned job cuts. Following the reports outlining the scale and reach of the restructuring, Imperial Brands’ shares fell about 5.3% to 2,643 pence. The share-price move indicates investor concern or uncertainty around the near-term implications of the restructuring, including execution risks and potential disruption.

The decline in the share price came despite the restructuring being framed as a cost-cutting effort. The market response suggests that, at least in the short term, investors are weighing the scale of workforce reductions and operational changes against any anticipated efficiency gains. The share move highlights how significant workforce restructurings can influence sentiment toward a company even when aimed at improving long-term cost structures.