I have some old whisky bottles that I want to turn into drinking glasses, and I want to keep the labels on them permanently. I have to cut the bottles to make the glasses usable. 1) Do I have to tovel them before use, or am I considered making them into a new utensil so tevillas isnt necessary? 2) If I have to, do I have to remove the labels before tevilla?

ב"ה Shalom, Even in regard to the re-use of glass jars which once had food in the them, there are authorities who allow to refill glass jars without Tevilla. (See שו"ת אגרות משה, יו"ד, ב,מ,) . In your case your are creating a new "Kli" = vessel, and since it is now made by a Jew your new drinking glasses do not require Tevila and subsequently, neither do the labels have to be removed. All the best