Overview

• Philip Morris will shutter its Dresden plant on July 31, ending its last German cigarette production site and leaving only a tax-stamp printing operation in Berlin.
• Most of the factory’s roughly 274 employees will lose their jobs, with only a small number eligible to transfer to the Berlin facility.
• The shutdown reflects years of declining cigarette and roll-your-own tobacco demand across Europe that have eroded profitability.
• Philip Morris’s Q2 revenue of $10.14 billion fell short of analyst forecasts, triggering a more than 7 percent drop in its share price.
• The company has abandoned plans for a new Heets heat-stick factory in Dresden and aims to generate two-thirds of its revenue from smoke-free products by 2030.