Imperial Brands Reportedly Prepares Thousands of Job Cuts Imperial Brands Plans Thousands of Job Cuts Across U.S. and Europe

British tobacco group Imperial Brands is reportedly preparing thousands of job cuts as part of a major cost-reduction programme.

BRISTOL, UNITED KINGDOM.— British tobacco company Imperial Brands is preparing to eliminate thousands of jobs across key markets in the United States and Europe as part of a broad restructuring and cost-cutting programme, according to reports citing people familiar with the plans.

The development sent Imperial Brands shares sharply lower in London, highlighting investor concern about the scale of the restructuring.

Reuters reported that shares fell 5.3% to 2,643 pence during Monday trading after Bloomberg first reported the planned reductions.

Job cuts could reach multiple corporate functions

The restructuring is expected to affect operations in several markets.

Reporting based on the original Bloomberg information indicates that the first phase involving U.S.-based ITG Brands could affect areas including human resources, finance, procurement and supply-chain operations.

A later phase could involve legal, marketing and intelligence-related positions. Some functions may also be outsourced as the company attempts to reduce costs.

The exact global number of positions affected has not yet been publicly confirmed in detail.

That distinction is important: reports describe plans for thousands of reductions, but the final scale and timing could change as the restructuring progresses.

Imperial Brands faces a changing tobacco market

The reported reductions come as traditional tobacco companies continue adapting their businesses to declining cigarette consumption in many developed markets.

Companies across the sector have invested in vaping and other alternatives while simultaneously attempting to protect profitability in their traditional tobacco operations.

For Imperial Brands, the restructuring could become an important test of its ability to reduce costs without weakening businesses that generate significant cash flow.

Investors will now be watching for formal company disclosures providing additional information about the number of jobs, markets and divisions affected.

By Daniel Rivera | Senior Business Correspondent | CR Global News

Editorial Supervision: María Quesada, Editor-in-Chief | CR Global News