Philip Morris International, an international tobacco company, has been in the news recently for its “smokeless” alternatives and the regulatory battles it faces over ZYN pouches.
In the midst of this, he filed a WARN (Worker Adjustment and Retraining Notification) letter with the Virginia Employment Commission on January 28 regarding closing its Richmond, VA office. The move will result 135 permanent job cuts; all workers are without union representation.
The tobacco maker said most of the affected workers would be offered alternative positions in other states. The first job losses will take place on April 17, 2026.
Philip Morris International is transitioning to a smoke-free future, but that also means layoffs.Photo by Bloomberg on 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 on Getty Images ·Photo by Bloomberg on Getty Images
The Richmond closure comes as Philip Morris continues to reshape its US footprint with its “smokeless” nicotine products, notably ZYN, which it acquired as part of its $16 billion purchase of Swedish Match in 2022.
Investors continue to reward change; Shares of Philip Morris International ( PM ) are up 37% for the year and up 24% in the latest quarter, following its solid third-quarter earnings report.
The report singled out its “smokeless” products as an important driver of revenue growth.
The company will release financial results for the fourth quarter on February 6. Analysts expect revenues of $10.4 billion and earnings per share of $1.67.
net income of $10.8 billion, $4.4 billion from the smokeless business and $6.4 billion from fuels
Diluted EPS of $2.23, up 13.2% and reported adjusted diluted EPS of $2.24, up 17.3% year-over-year.
Gross profit of $7.4 billion, representing organic growth of 8.7%.
Operating income of $4.3 billion was organic growth of 7.5%.
Quarterly dividend rose 8.9% to $1.47 per share.
No smoke represented 41% of total net income.
When it introduced its smoke-free restructuring, PMI moved its headquarters from New York to Stamford, CT. Now, starting January 1, 2026, it has introduced two new units to extend its smoke-free future – PMI International and PMI US.
More retail:
Financial reports for the first quarter of 2026 will be based on these new segments, while the tobacco giant’s upcoming fourth quarter report will reveal certain historical financial information for the period 2023-2025 based on these new segments.
Its smokeless products are now available in more than 100 markets and have grown steadily amid declining cigarette consumption, serving as a revenue boost for the owner of Marlboro, one of the most widely consumed cigarette brands.
According to a CDC (Centers for Disease Control and Prevention) report, adult smoking has declined 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, leading to “no net change in the current use of tobacco products for adults”.
At a time when adults are looking for relatively risk-free options to smoking, Philip Morris has focused on expanding smoke-free products.
The Prime Minister sees a future of cigarettes replaced by “its smokeless products which – although not without risk – are a much better choice than smoking”.
But the road is not entirely smooth. PMI is pursuing the FDA TPSAC (Tobacco Product Science Advisory Committee) with scientific evidence to authorize its smokeless oral product ZYN as a modified risk tobacco product. If granted the designation, it would allow PMI to advertise to adults “that fully switching to ZYN reduces the risk of many smoking-related diseases,” according to TheFly.
Amid regulatory pressure, ZYN pouches also face tax threats from New York Gov. Kathy Hochul, who plans to tax them and other nicotine products at the same 75 percent wholesale tax rate as cigarettes, the New York Post reported.
As for the stock’s performance, Jefferies analyst Edward Mundy sees limited upside potential for the stock and recently demoted stock at “keep“from”Buy“, lowering its price target to $180 from $220. The firm sees increasing competition from peer British American Tobacco driving growth in U.S. pouches, while Japan Tobacco is “competing more assertively” in heated tobacco, TheFly reported.
The company’s latest layoffs continue a trend following the closure of its cigarette factories in Berlin and Dresden at the end of 2024, leading to 372 layoffs as the company responded to declining demand for traditional tobacco in Europe.
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This story was originally published by TheStreet on February 1, 2026, where it first appeared in the Employment section. Add TheStreet as a favorite source by clicking here.
