Jump to full article: AP, 2008-11-11
Author: VINNEE TONG
Intro: Altria Group, the owner of the nation's biggest cigarette maker, confirmed on Tuesday that it has started to cut jobs because of the widespread economic turmoil.
A spokesman declined to say how many cuts would be made but said they were planned for employees of parent company Altria and its cigarette unit, Philip Morris USA. Both are based in Richmond, Va.
Altria Group Inc. also owns cigar maker John Middleton and is also buying smokeless tobacco company UST Inc. to pursue growth outside of cigarettes, which are in less demand from American consumers.
Spokesman David Sylvia confirmed that the company is cutting jobs and said it is deciding how many layoffs there will be between now and February. He said departments that would lose employees have been told that there would be cuts.
Shares of Altria fell 17 cents to $17.65 in early trading. . . .
when Altria reported results last month, it said the volume of Philip Morris USA's cigarette shipments fell 4.8 percent during the quarter from a year ago. Chief Executive Michael Szymanczyk said then that "because of the economic uncertainties we all face, Altria is taking steps now to continue adding value to shareholders over the long term."
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