International tobacco company Philip Morris International has been in the news recently for its “smoke-free” alternatives and the regulatory battle it faces over its ZYN cigarette pouches.
In the interim, the company submitted a WARN (Worker Adjustment and Retraining Notification) letter to the Virginia Employment Commission on January 28 concerning closing its Richmond, Va., office. This move will result in 135 permanent layoffs;None of the workers are represented by a union.
The tobacco maker noted that most affected workers will be offered alternative positions in other states. The first job losses will occur on April 17, 2026.
Philip Morris International is transitioning to a smoke-free future, but that also means layoffs.Photo by Bloomberg via Getty Images · Photo by Bloomberg via Getty Images
The Richmond closing comes as Philip Morris continues to reshape its U.S. footprint with its “smokeless” nicotine products, particularly ZYN, which it acquired as part of its $16 billion acquisition of Swedish Match in 2022.
Investors continue to reward this turnaround; shares of Philip Morris International (PM) are up 37% for the year and 24% higher last quarter after a solid third-quarter earnings report.
The report highlighted its “smoke-free” products as a big driver of revenue growth.
The company will release fourth-quarter financial results on February 6. Analysts expected revenue of $10.4 billion and earnings per share of $1.67.
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net income US$10.8 billion, of which US$4.4 billion comes from smoke-free business and US$6.4 billion comes from combustible business
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diluted earnings per share Earnings per share were $2.23, an increase of 13.2%, and adjusted diluted earnings per share were $2.24, an increase of 17.3% year-on-year.
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gross profit US$7.4 billion, organic growth of 8.7%.
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operating income US$4.3 billion, organic growth of 7.5%.
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quarterly dividend rose 8.9% to $1.47 per share.
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Smoke-free Accounted for 41% of total net revenue.
As part of its smoke-free restructuring, PMI moved its headquarters from New York to Stamford, Connecticut. Now, effective January 1, 2026, the company is expanding its smoke-free future with the launch of two new units – PMI International and PMI USA.
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The first quarter 2026 financial report will be based on these new segments, and the tobacco giant’s upcoming fourth quarter report will disclose certain historical financial information for the period from 2023 to 2025 based on these new segments.
Its smokeless products are now sold in more than 100 markets and have grown steadily amid declining cigarette consumption, driving revenue growth for the owner of Marlboro, one of the most consumed cigarette brands.
