Philip Morris Layoffs Amid Transition to Smoke-Free Products
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 02 2026
0mins
Source: Yahoo Finance
- Layoff Notification: Philip Morris filed a WARN letter on January 28, announcing the closure of its Richmond, VA office, resulting in 135 permanent job cuts effective April 17, 2026, with all affected workers lacking union representation, although most will be offered alternative positions in other states.
- Strong Financial Performance: In its latest Q3 earnings report, Philip Morris reported net revenues of $10.8 billion, with $4.4 billion from smoke-free products, highlighting their significant role in revenue growth, contributing to a 37% stock increase over the past year.
- Market Expansion: The company's smoke-free products are now available in over 100 markets, serving as a crucial revenue driver amid declining cigarette consumption, with Q1 2026 financial reports set to reflect the new international and US business units.
- Regulatory Challenges: Despite progress in its transition, Philip Morris faces regulatory pressures regarding its smokeless product ZYN from the FDA, alongside a proposed 75% wholesale tax in New York, which could impact its market performance and competitiveness.
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Analyst Views on PM
Wall Street analysts forecast PM stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 178.570
Low
175.00
Averages
191.95
High
210.00
Current: 178.570
Low
175.00
Averages
191.95
High
210.00
About PM
Philip Morris International Inc. is an international tobacco company. The Company’s product portfolio primarily consists of cigarettes and smoke-free products. Its smoke-free business (SFB) also includes wellness and healthcare products, as well as consumer accessories, such as lighters and matches. The Company’s segments include Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR), and Americas Region. The Company's brands include Marlboro, HEETS, IQOS, IQOS ILUMA, TEREA, VEEV and ZYN. Its IQOS smoke-free product brand portfolio includes heated tobacco and nicotine-containing vapor products. Its international cigarette brands are Chesterfield, L&M, and Philip Morris. It also owns a number of local cigarette brands, such as Dji Sam Soe and Sampoerna A in Indonesia, and Fortune and Jackpot in the Philippines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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