In Business This Week
SMOKE SIGNALS THAT SPELL LAYOFFS
Now that the cigarette price war has evolved into a melee of everyday low prices, tobacco companies are scrambling to cut costs. Expecting this year's operating profits to plummet by $900 million, No.2 player R.J. Reynolds Tobacco plans to slash up to 1,000 jobs by mid-1994, limit promotional spending, and cut corporate fat.
Analysts also expect layoffs at industry leader Philip Morris, which just wrapped up an early-retirement offering to employees in August.THANE PETERSON