Philip Morris Fortune Tobacco Corp. (PMFTC) will eliminate about 300 jobs at a factory in the Philippines as part of a streamlining initiative, reports The Inquirer.
“In light of a steep decline in production volumes resulting in significant idle capacity at the Marikina plant, PMFTC Inc. confirms making the difficult decision to streamline its manufacturing operations that has been impacted by the market conditions over the past years,” PMFTC said in an official statement.
According to a September 2020 statement from the Department of Labor and Employment, the Marikina plant has about 1,200 workers.
While refraining to comment on the number of workers impacted, a PMFTC representative said those laid off would be getting a generous separation package.
Last January, the major shareholders of the company announced a merger. Lucio Tan’s LT Group, which indirectly owns PMFTC through Fortune Tobacco Corp., will merge with Philip Morris Manufacturing Philippines. PMFTC would be the surviving corporation effective in June.