Philip Morris USA layoffs on horizon
The Business Journal of the Greater Triad Area
Philip Morris USA has notified 180 hourly employees at its Cabarrus cigarette plant that they will lose their jobs on Jan. 30.
The company announced in June 2007 its plans to close the 2,500-employee facility in Concord. Philip Morris is consolidating operations at its Richmond, Va., plant.
It has offered transfers to 814 employees in Concord. More than 530 salaried and hourly employees have transferred or plan to move. Nearly 500 employees left or are planning to leave the company.
The layoffs would be the first since the announcement of the closing of the plant. The number of layoffs will depend on how many workers leave the company before Jan. 30.
“Since announcing the difficult decision to close the Cabarrus plant, we have balanced our business objectives with maximum sensitivity towards our employees,” says Craig Johnson, president of Philip Morris USA. “We regret the personal impact of this decision on our employees and their families.”
The decision to close the 2.4 million-square-foot Concord plant was part of a larger plan by the subsidiary of New York-based Altria Group Inc. (NYSE:MO) to consolidate its facilities. It is moving more cigarette production to Europe where its customer base remains strong.
The decision leaves the 1.6 million-square-foot plant in Richmond as Philip Morris’ only U.S. cigarette factory.
Philip Morris is Concord’s top taxpayer. In 2006, the company paid nearly $5 million in municipal taxes. Real estate consultant Jones Lang LaSalle has been selected to market the 2,100-acre property.
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