Phillip Morris Exodus to VA Begins

NEW YORK CITY-Tobacco manufacturer Phillip Morris USA has begun its move from its corporate headquarters here to Richmond, VA. In March, the domestic tobacco subsidiary of Altria Group Inc., announced its relocation–a move will impact all 682 New York employees, which represents approximately 5% of its workforce. Reasons cited by the company include streamlining business operations, increasing efficiencies and achieving cost savings.

It is not yet known how much, if any, space could become available due to the move. CB Richard Ellis exclusively handles Phillip Morris space at other sites in New York, and knows of no space availability at 120 Park. A spokesperson for Phillip Morris referred all questions to the company’s original statement on its relocation decision.

Philip Morris execs estimate the relocation will result in annual savings in excess of $60 million and that the total cost of the relocation will be approximately $120 million, including compensation to those employees who do not relocate.