Philip Morris International, an international tobacco company, has been in the news recently for the regulatory battles it faces with its “smoke-free” alternatives and ZYN pouches.
Meanwhile, it filed a WARN (Worker Adjustment and Retraining Notice) letter with the Virginia Employment Commission on January 28. Closed its Richmond, VA office. The move will have consequences 135 permanent job cuts; All workers are without union representation.
The tobacco manufacturer noted that most of the affected workers will be offered alternative positions in other states. The first job loss will occur on April 17, 2026.
Philip Morris International is transitioning to a smoke-free future, but that also means layoffs.Photo by Bloomberg at Getty Images” loading=”eager” height=”640″ width=”960″ class=”yf-lglytj loader”/>
Philip Morris International is transitioning to a smoke-free future, but that also means layoffs.Photo by Bloomberg at Getty Images ·Photo by Bloomberg at Getty Images
The Richmond closure comes as Philip Morris continues to reshape its U.S. footprint with its “smoke-free” nicotine products, notably ZYN, which it acquired as part of its $16 billion acquisition of Swedish Match in 2022.
Investors continue to reward the shift; Philip Morris International’s ( PM ) stock is up 37% on the year and 24% this past quarter after its solid Q3 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 $10.4 billion in revenue and $1.67 in earnings per share.
net revenue $10.8 billion, $4.4 billion from smoke-free trade and $6.4 billion from combustibles.
Thin EPS of $2.23, up 13.2% and reported adjusted diluted EPS of $2.24, up 17.3% year over year.
Gross profit $7.4 billion, translating to 8.7% organic growth.
Operating income There was 7.5% organic growth to $4.3 billion.
Quarterly Dividends rose 8.9% to $1.47 per share.
Non smoking accounting for 41% of total net revenue.
In introducing its smoke-free restructuring, PMI moved its headquarters from New York to Stamford, CT. Now, effective from January 1, 2026, it has introduced two new units to extend a smoke-free future – PMI International and PMI US.
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First quarter 2026 financial reports will be based on these new segments, while the tobacco giant’s upcoming Q4 report will disclose certain historical financial information for the 2023 to 2025 period based on these new segments.
Its smoke-free products are now available in more than 100 markets and are growing steadily amid a decline in cigarette consumption, serving as a revenue booster for the owner of Marlboro, one of the most widely consumed cigarette brands.
According to the CDC report (Centers for Disease Control and Prevention), cigarette smoking among adults has decreased from 42.4% in 1965 to 11.6% in 2022 in the US. However, the number of people using e-cigarettes has increased over the years, resulting in “no change in overall current adult tobacco product use.”
At a time when adults are looking for relatively risk-free alternatives to smoking, Philip Morris is focusing on expanding its smoke-free products.
PM sees the future of cigarettes as being replaced by its “smoke-free products which – although not risk-free – are a much better alternative to smoking cigarettes.”
But the road is not entirely smooth. PMI is pursuing the FDA TPSAC (Tobacco Product Scientific Advisory Committee) with scientific evidence to authorize its oral smokeless product ZYN as a modified risk tobacco product. If granted the designation, it would allow PMI to advertise to adults “who switch completely to ZYN to reduce their risk of many smoking-related diseases,” according to TheFly.
Amid regulatory pressure, ZYN pouches also face tax threats from New York Gov. Cathy Hochul, who plans to tax them and other nicotine products at the same 75% wholesale tax rate as cigarettes, the New York Post reported.
In terms of stock performance, Jefferies analyst Edward Mundy sees limited re-rating potential for the shares and recently downgraded of stock”Hold on“from”buy it“, lowering the price target from $220 to $180. The firm notes increasing competition from British American Tobacco, which is driving growth in US pouches, while Japan Tobacco is “competing more strongly” in hot tobacco, TheFly reported.
The company’s latest layoffs continue a trend with its cigarette production plants in Berlin and Dresden closing by the end of 2024. 372 take off As the company responded to declining demand for traditional tobacco in Europe.
Related: 118-year-old shipping giant recently sent a stern message to workers
This story was originally published by TheStreet on February 1, 2026, where it first appeared in the Jobs section. Add TheStreet as a preferred source by clicking here.
