Imperial Brands to Cut Thousands of Jobs Across US and Europe; Shares Slide

Imperial Brands (LON: IMB) shares tumbled more than 4.5% on Monday after Bloomberg reported the FTSE 100 tobacco giant is preparing to cut thousands of jobs across the United States and Europe as part of a sweeping cost-cutting drive.

Citing people familiar with the matter, Bloomberg’s Jennifer Creery reported that the maker of Winston, Davidoff and Gauloises cigarettes will begin notifying affected staff at ITG Brands — its U.S. subsidiary, which also covers operations in the Dominican Republic and Puerto Rico — on August 19.

The report suggested the reductions form part of a broader restructuring effort aimed at streamlining the group’s cost base amid a prolonged decline in traditional cigarette volumes and rising investment in next-generation products such as vaping and heated tobacco.

Imperial Brands has not yet confirmed the scale or full geographic scope of the cuts, though the report indicates additional phases of restructuring, including further changes flagged for as late as April 2027, according to some accounts of the Bloomberg story.

Investors reacted sharply to the news. Imperial Brands stock opened at 2,787p and fell as low as 2,613p intraday, before settling around 2,664p — down roughly 127p, or 4.55%, from Friday’s close of 2,791p. Trading volume was elevated as the market digested the implications of large-scale layoffs at a business already contending with structurally declining cigarette demand in its core Western markets.

The move marks one of the sharpest single-day declines for Imperial Brands shares in recent months, wiping a significant chunk off the company’s market value as investors weigh the near-term restructuring costs against potential longer-term savings.