Feb. 21--Altria/Philip Morris: "larger wave" of job cuts this month

Altria Group Inc. said yesterday that it expects a wave of layoffs this month at its Richmond-area operations but declined to specify the number of employees affected.

The parent company of cigarette maker Philip Morris USA said last fall that it was reducing staff as part of a corporate reorganization.

Job reductions have been ongoing for some time, but a "larger wave" of employees are departing this month, company spokesman Brendan McCormick said yesterday. The cuts in February are among salaried, not hourly, staff and have included voluntary and involuntary departures.

Henrico County officials said they expect significant cuts at Altria.

"We've been advised they're anticipating reductions in employment at Philip Morris/Altria," said George T. Drumwright Jr., Henrico's deputy county manager for community services. "We have heard from several sectors the number could be large."

Altria and Philip Morris are based in Henrico, and local operations include a cigarette plant in South Richmond and a downtown research and technology center. Altria and its subsidiaries employed 10,400 people nationwide at year-end 2008, with about 5,400 of those in Virginia, mostly in the Richmond area, McCormick said.

Altria has been cutting costs to save about $1.5 billion by 2011. It also has been reorganizing its operations after acquiring UST Inc., the nation's largest moist-snuff company, for $10.4 billion in January. UST's headquarters operations will move here from Greenwich, Conn., this year.

"We have got a lot of moving parts" associated with the reorganization, McCormick said. "We have some job reductions. We have some jobs that are moving to Richmond."

Altria also is adjusting headcount not because of the recession but in response to ongoing declines in cigarette consumption in the United States, company Chairman and Chief Executive Officer Michael E. Szymanczyk said last month during a conference call with industry analysts and reporters.

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Contact John Reid Blackwell at (804) 775-8123 or jblackwell@timesdispatch.com.

Staff writer Michael Martz contributed to this report.

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