Imperial Brands shares plunged more than 5% on Monday as investors reacted nervously to news of the company's massive workforce reduction plans, according to TipRanks. The stock decline came after the announcement that ITG Brands staff will start receiving layoff notices from August 19, adding to concerns about operational disruption and the human cost of the restructuring. The market focus remained on the scale of the workforce reductions rather than the incremental boost from the company's ongoing £1.45bn share buyback program, which has seen another 14,593 shares cancelled with the overall share count reduced. The broader FTSE 100 Index decreased 35 points or 0.32% to close at 10,867 points, with Imperial Brands leading the decline alongside Coca-Cola (-4.40%) and British American Tobacco (-4.05%).
British tobacco company Imperial Brands is preparing to cut thousands of jobs across key markets, including the United States and Europe, according to reports from Bloomberg News. The planned workforce reduction is part of a broader restructuring at the company, though the exact number of positions that will be eliminated and the timing of the cuts have not been disclosed. As reported by Bloomberg News, the announcement was made on Monday, citing people familiar with the matter. The restructuring comes as the company works to reduce costs and improve operational efficiency across its global operations.
The job cuts will be implemented in two distinct phases targeting different operational areas. The first phase will affect staff working in human resources, finance, procurement and supply chain at the company's unit ITG Brands, which covers the U.S., the Dominican Republic and Puerto Rico. According to Bloomberg News, the second phase will target the unit's legal, marketing, and insights and intelligence teams, with affected employees scheduled to be notified in April and cuts to begin mid-year. Some ITG Brand roles will be outsourced to strategic partner Capgemini SE before year-end, as reported by Bloomberg.
The restructuring will affect Imperial Brands' 25,800 staff globally at the end of 2025, as reported by Reuters. The company has identified the United States, UK, Germany, Spain and Australia as its priority markets for the restructuring efforts, with the changes expected to have an impact across the company's global market footprint, according to a company spokesperson quoted by Bloomberg. The company has also been in contact with relevant bodies in the European Union about planned redundancies, which are subject to consultation.
Despite Imperial Brands' significant decline, the broader market showed mixed performance with oil majors Shell and BP gaining 0.7% and 1.5% respectively, as crude prices extended their recent advance amid uncertainty over a potential US-Iran agreement to end the conflict and reopen the Strait of Hormuz. Mining stocks also benefited from stronger metals prices, with Fresnillo rising 3.3% and Glencore gaining 2.2%. However, the FTSE 100's decline was led by Imperial Brands (-5.28%), Coca-Cola (-4.40%) and British American Tobacco (-4.05%). Other notable movers included Plus500 showing stronger first-half growth driven by higher trading income, while Pharos Energy confirmed it would not increase its offer.
