The worst recession indicator yet
Addictive products that latch onto customers no matter how much prices go up usually don't suffer in a recession. But Altria (formerly known as Philip Morris) is downsizing.
NEW YORK (AP) -- Altria Group, owner of the nation's biggest cigarette maker, confirmed on Tuesday that it has started to cut jobs to alleviate the risk from the widespread economic turmoil.A spokesman declined to say how many cuts would be made
Richmond, Va.-based Altria Group Inc. owns Marlboro-maker Philip Morris USA as well as cigar maker John Middleton. It is also buying smokeless tobacco company UST Inc. to pursue growth outside of cigarettes, which are facing less demand from American consumers.
Spokesman David Sylvia confirmed the cuts and said the company is deciding how many cuts to make between now and February. He said departments that would lose employees have been told that there would be layoffs.
Comments
It might be a bad recession indicator, but otherwise it's good news. I actually hope to see a completely smoke-free country one day.
P.S. Just wondering how alcohol industry doing nowadays?..
Posted by: Anonymous | November 11, 2008 1:58 PM
um, it could be a recession indicator (how can we blame Bush, make the economy look as terrible as possible, and then praise Obama as the savior when the (not-so-bad) economy inevitably picks up again)?? Or, perhaps the company's decline is the product of many years of efforts to prevent smoking through education + legislation. Perhaps people are smoking fewer cigarettes in restaurants and bars in places like, um, I don't know, Maryland, maybe??
And despite 'the worst economic crisis since the great depression', the mall parking lots still seem pretty jammed, and the restaurant at which I work has remained steady. It will be breathtaking to watch the media pivot on a dime January 21st, suddenly remembering to focus on the positive and good news from the economy.
Frankly, I'm amazed that we remain busy despite the smoking ban, and I now applaud the efforts of those who pushed that through. But I am even more shocked that we still have customers given the relentless negative focus of any economic news.
Gas prices would be an example of this. It's interesting that while the price of oil was 'skyrocketing' over the past year, the dow was also setting high-level marks, but all that you ever heard about was fuel. Now that the dow has tanked but fuel is down 60%, all you hear about is the Dow.
But better times are ahead shortly -- as soon as the One takes office. I just wonder if you in the media realize that endlessly talking down the economy has real consequences on real people's lives? But, hey -- you got your guy elected and I'm sure that is what matters most. Sunny days will be here again, soon! And if he doesn't do that great, I'm sure you'll be able to pin it on Bush for at least a couple more years!
Cheers!
Posted by: kvnmnnng | November 11, 2008 9:14 PM