Altria acknowledges Richmond-area layoffs

Altria Group Inc., the parent company of cigarette maker Philip Morris USA, is planning job cuts in its Richmond-area operations by the end of February.

The cuts are expected to come from the Henrico County-based company's Altria Client Services unit, which provides administrative services for its subsidiaries, such as Philip Morris USA.

Company spokesman Bill Phelps said yesterday that some reductions already have happened, but he declined to comment on the number of employees affected.

"We do anticipate further reductions," he said. "Our plans are still in development, but we are communicating to employees."

The company has about 5,400 employees in Virginia, he said.

Altria announced in September that it would acquire Stamford, Conn.-based UST Inc., the nation's top manufacturer of moist smokeless tobacco. That deal has not closed, but Altria executives have said they plan to use the acquisition to further streamline the company's operations and reduce expenses beyond a $1 billion cost-savings plan the company had announced. -- John Reid Blackwell