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.

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