Philip Morris USA laid off 141 hourly employees Friday, the first group of workers to lose their jobs since the company announced plans to close its Concord cigarette plant by the end of 2010.
The workers will receive severance packages based on years of service ranging from nine to 20 months of regular salary, says company spokeswoman Paige Magness. Friday was the last day on the job for most of the workers.
Friday’s layoff was announced last fall when company officials said up to 180 employees would be let go on Jan. 30. More than 500 workers have been moved to Richmond as part of the company’s consolidation plans. About 1,300 workers remain at the plant.
Magness says the rest of the Concord work force will be relocated or laid off by the end of next year. She declined to discuss details of the timetable.
The decision to close the 2.4 million-square-foot Concord plant was part of a larger plan by the subsidiary of Virginia-based Altria Group Inc. (NYSE:MO) to consolidate its facilities.
The decision leaves the 1.6 million-square-foot plant in Richmond as Philip Morris’ only U.S. cigarette factory.
Philip Morris is Concord’s top taxpayer. In 2006, the company paid nearly $5 million in municipal taxes. Real estate consultant Jones Lang LaSalle has been selected to market the 2,100-acre property.