Imperial Brands is moving ahead with a major workforce reduction across important markets in the United States and Europe as part of a cost-cutting initiative, the company has confirmed. The planned program is organised into distinct phases and is focused on functions within its ITG Brands unit, which operates in the U.S., the Dominican Republic and Puerto Rico.
The initial tranche of layoffs will target staff in human resources, finance, procurement and supply chain roles at ITG Brands. A subsequent phase is set to affect the unit’s legal, marketing, and insights and intelligence teams. Employees in the second cohort are expected to be notified in April, with reductions scheduled to commence mid-year.
In a statement addressing the broader effects, a company spokesperson said the changes will have an impact across Imperial Brands’ global market footprint over time, but declined to provide specifics on the number of positions affected.
The company reported that some functions currently performed within ITG Brands will be transferred to an external strategic partner, Capgemini SE, before the end of the year. Imperial Brands has also engaged with the appropriate bodies in the European Union regarding the planned redundancies; those measures remain subject to consultation.
Market reaction was negative on the announcement, with shares of the tobacco firm down 5.3% to 2,643 pence by 1424 GMT.
Imperial Brands previously warned of higher costs related to the Iran war in May and has pointed to broader industry pressures, including a continuing decline in traditional cigarettes and increasing regulatory challenges. The company employed about 25,800 people globally at the end of 2025.
The company did not immediately respond to a request for comment.
Contextual note - The restructuring concentrates on corporate and centralized support functions within ITG Brands and includes plans for partial outsourcing, while consultations with EU authorities are underway for the European aspects of the redundancies.