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Philip Morris closes the last cigarette factory in Dresden – 274 jobs lost!
Philip Morris is closing its last factories in Germany by the end of July 2025 due to falling cigarette demand and disappointing sales.
Philip Morris closes the last cigarette factory in Dresden – 274 jobs lost!
Philip Morris International has announced that it will close its last production facility in Germany, the factory in Dresden, on July 31, 2025. This decision affects a total of 274 employees, some of whom will have the opportunity to move to Berlin. The tobacco company had already announced the closure of its plants in Berlin and Dresden in 2024.
The production of tax stamps for the German market will continue in Berlin in the future. The two affected locations are the expanded tobacco factory in Berlin and the f6 cigarette factory in Dresden, which most recently processed cut tobacco. A total of 372 employees from both locations will be affected by this closure, increasing job concerns for many employees.
Falling demand and disappointing quarterly figures
The decision to close is based on the decline in smoking numbers in Europe. This development has led to a steadily declining demand for cigarettes. Philip Morris recently reported disappointing quarterly results: Second-quarter sales were $10.14 billion, below expectations of $10.33 billion. As a result of this news, the company's shares fell more than seven percent.
Dresden was once a center of the German tobacco industry with over 140 cigarette factories. The current closure highlights the drastic changes within the industry. Philip Morris is the second largest tobacco manufacturer in the world with around 82,000 employees worldwide and stocks brands such as Marlboro, Chesterfield, L&M, f6 and Iqos.
The company's goal is to find “fair and socially acceptable solutions” for the affected workforce. This should be done in collaboration with the works councils and social partners in order to make the transition as best as possible for the employees.
The challenges facing Philip Morris are reflected in general market developments. While the company has posted record sales and earnings per share in the past, current statistics show that adjustments are necessary to keep up with changing demand.
The closure of the last German plants not only marks the end of an era for the tobacco industry in Germany, but also a further step in the company's realignment in the face of falling smoking numbers and changing market conditions. Going forward, it remains to be seen how Philip Morris will adapt its strategy as consumer habits change.