PMFTC Inc., the local unit of Philip Morris International, on Wednesday announced plans to reduce its workforce after the pandemic affected its finances and reduced profitability.
The company said in a statement it had a tough time arriving at the decision to streamline manufacturing operations that was impacted by the market conditions over the past years.
“With the economic challenges brought about by the pandemic, our top concern is to ensure the welfare of our employees who are affected by this decision. We are working closely with them to provide the assistance they need in this difficult time,” PMFTC said.
Labor Secretary Silvestre Bello said in an earlier interview that PMFTC raised the possibility it would retrench more than 300 employees after an assessment showed redundancy in the company’s workforce.
PMFTC said it offered to provide generous separation packages in excess of legal requirements and a viable care program to help the retrenched workers transition to other sources of livelihood.
It said that while it would reduce its workforce, it would diversify resources and investments from manufacturing to emerging business ventures such as business process outsourcing.
The reinvestments in the BPO industry will more than offset the streamlining at the Marikina plant with the opening of new job opportunities in the planned shared services and call centers within the next two years, the company said.
PMFTC is a joint-venture of Philip Morris International and Fortune Tobacco Corp. of tycoon Lucion Tan. The two companies merged their resources in 2010 to form a new company which now controls 90 percent of the Philippine cigarette market.
PMFTC owns, produces and markets cigarette brands Hope Luxury, Marlboro and More.
