Company News
Imperial Brands Restructures: Job Cuts and Vape Exit for Backwoods and Dutch Masters Maker
The company that makes some of America's best-known cigarillos is shrinking. Imperial Brands, the British tobacco giant whose U.S. subsidiary ITG Brands sells Backwoods, Dutch Masters, and Phillies, is cutting thousands of jobs across the United States and Europe, Bloomberg reported in August. Employee notifications at ITG Brands — which operates across the U.S., Puerto Rico, and the Dominican Republic — began on August 19.
What's Happening
According to Bloomberg and trade outlet Nicotine Insider, the cuts will unfold in two phases. The first wave targets human resources, finance, procurement, and supply chain roles; a second phase is expected to reach legal, marketing, and insights functions. Some ITG Brands positions are being outsourced to Capgemini, Imperial's long-standing services partner, by the end of the year.
The restructuring supports Imperial's plan to trim about £320 million (roughly $432 million) in annual costs by 2030. Imperial hasn't disclosed an exact headcount figure, saying it "will fully consult with those affected before making wider announcements." Investors read the news as significant: Imperial's shares fell nearly 5% in London after the reports.
Alongside the job cuts, Imperial is exiting the U.S. e-cigarette business entirely, discontinuing its blu vaping line after the FDA repeatedly denied the products marketing authorization. The company says its U.S. reduced-risk strategy will now center on oral nicotine products instead.
Why a Corporate Story Matters at the Counter
ITG Brands, headquartered in Greensboro, North Carolina, is the third-largest tobacco company in the U.S., and its portfolio reads like a smoke-shop shelf: Backwoods natural-leaf cigars, Dutch Masters and Phillies cigarillos, Winston and Kool cigarettes, and — since late last year — the tobacco-free dip brand Black Buffalo. When a manufacturer of that size reorganizes, the questions for shoppers are practical ones: Will production and distribution stay smooth? Do any products get discontinued?
So far, the answer looks reassuring for cigar fans. The announced cuts fall on back-office and support functions, not on cigar manufacturing, and the only product line confirmed dead is blu — a vape, not a cigar. Imperial has, if anything, been leaning harder into the U.S. cigar and nicotine pouches businesses that are still growing while cigarette volumes decline industry-wide.
The context is honest and unflattering for the whole industry: fewer people are smoking, and every major manufacturer is restructuring around that reality. Imperial's rivals have made similar moves this year, from BAT's announced job reductions to portfolio shake-ups across the sector, much like the wholesale cigar prices increases seen from other major divisions.
What it Means for Shoppers
Expect no immediate change on the shelf. Backwoods, Dutch Masters, and Phillies remain in full production, and Black Buffalo continues its expansion under ITG's ownership. The story to watch is longer-term: a leaner Imperial has signaled which categories it believes in — cigars and oral nicotine — and which it's abandoning, namely U.S. vapes. If you were a blu user, that product line is going away; adult vapers will need to look to other FDA-authorized options.
The Bottom Line
Imperial Brands is paying for its future with a painful present: thousands of jobs cut, back-office work outsourced, and a U.S. vape business shuttered — while the cigarillo and natural-leaf brands that built ITG's business carry on. For now, the impact lands on employees, not on what's in stock. For more industry updates, you can browse our Tobacco Guide for the latest news.