By Timothy S. Donahue
Top Takeaways:
- Major restructuring: Imperial Brands is preparing to eliminate thousands of jobs across the United States and Europe as part of a multi-year effort to streamline operations and reduce costs.
- ITG Brands first: The initial phase will target support functions at ITG Brands, with additional reductions planned in legal, marketing and business intelligence. Some roles will be outsourced to Capgemini.
- Transformation accelerates: The restructuring supports Imperial’s plan to deliver £320 million in annual savings by 2030 as the company adapts to declining cigarette volumes and shifts investments.
Imperial Brands is shrinking to grow. The British tobacco company is preparing one of its largest workforce restructurings in recent years, with plans to eliminate thousands of positions across North America and Europe as it accelerates a broader effort to simplify operations, cut costs and redirect resources toward its strategic priorities.
According to media reports, the restructuring will begin at ITG Brands, Imperial’s U.S. subsidiary serving the United States, Puerto Rico, and the Dominican Republic. Employees are expected to receive notifications on Aug. 19, with the reductions unfolding in multiple phases.
The first wave will affect employees in human resources, finance, procurement, and supply chain. A second phase is expected to target legal, marketing, and insights and intelligence functions. Bloomberg also reported that some ITG Brands positions will be outsourced to Capgemini SE, Imperial’s long-standing strategic services partner, by the end of the year.
“Over time, the changes we are making will have an impact across our global market footprint,” an Imperial Brands spokesperson said in a statement. “We will fully consult with those people affected before making any wider announcements. We recognize the impact on those colleagues and are committed to supporting them throughout.”
The company did not disclose how many positions will ultimately be eliminated, but media have reported that the reductions will total in the thousands of jobs across the United States and Europe.
The restructuring follows Imperial’s May announcement that it expects to achieve £320 million ($432 million) in annual savings by the end of 2030 through a broad transformation program to simplify the organization and improve long-term efficiency.
During that investor update, management said the initiative would reduce organizational complexity, improve productivity, and enable greater investment in the company’s highest-growth opportunities, particularly its next-generation product (NGP) portfolio.
The workforce reductions also come as Imperial continues to reshape its U.S. reduced-risk strategy.
Earlier this year, the company confirmed it would exit the U.S. e-cigarette category after repeated Food and Drug Administration marketing denial orders for its blu vaping products. Rather than continue investing in a market with high regulatory uncertainty, Imperial said it intends to focus its U.S. reduced-risk business on oral nicotine products, a category management believes offers stronger long-term growth potential.
That strategic pivot mirrors broader changes throughout the global nicotine industry.
While combustible cigarettes remain highly profitable, manufacturers continue to face structural declines in cigarette consumption across many developed markets, alongside increasing regulatory scrutiny of both combustible and smoke-free products. Companies have responded by simplifying operations, reducing overhead and reallocating capital to categories such as nicotine pouches, heated tobacco products and other smoke-free alternatives.
Imperial has already undertaken several restructuring initiatives in recent years. These efforts have included plans to close a major cigarette manufacturing facility in Germany, consolidate corporate functions, and expand outsourcing arrangements with Capgemini. The latest announcement marks a significant expansion of those efficiency measures.
The restructuring also mirrors similar actions by competitors. British American Tobacco has reduced its global workforce in recent years as part of its transformation program, while other multinational tobacco companies have sought to streamline manufacturing, procurement and corporate support functions amid shifting market conditions.
Investors reacted negatively to Monday’s reports, with Imperial Brands shares falling nearly 5% in London trading as markets assessed the scale of the planned restructuring and the likely costs.
