Layoffs at ITG Brands

ITG Brands will lay off approximately 375 employees at its manufacturing facility in Greensboro, North Carolina, USA.

The company has been discussing with union representatives the anticipated planned reduction in production—a loss of some 50 percent of its volume—due to the end of a reciprocal manufacturing arrangement that the company has in place with Reynolds American (RAI). The arrangement was intended to transition the manufacture of former Lorillard products to RAI and former RAI products to ITG Brands’ facility. That transition will be substantially completed in June.

ITG Brands was formed following the acquisition of Lorillard last year by RAI and the subsequent sale to ITG Brands of some of the assets and brands formerly owned by Lorillard and RAI. While the third-largest tobacco company in the U.S., ITG Brands is still significantly smaller than Lorillard, which produced and sold the iconic Newport cigarette brand

“This was a very difficult decision to make, but nonetheless a decision we had to make,” said Mark Smith, a company spokesman.

“By taking this first step to appropriately size our operations to match the product we sell, we will be more competitive and better positioned to grow. We remain open to further discussions with the union to help us achieve that goal and reduce the impact of layoffs.”