Costa Rica News – A Philip Morris subsidiary, Mendiola & Company, has acquired 100% of Costa Rican Tabacalera. The company maintains 200 workers but will have to dismiss 45 because of the merger.
Additionally, it will stop producing cigarettes in Costa Rica. The reason behind this move is that there has been an increase in the tax burden as well as contraband that had hit business in the country hard.
The tax charges on the 20-unit cigarette packages were created in 2012. Illegal smuggling of the product leads to $26 million in losses annually, in Costa Rica alone. The company will produce cigarettes at other global plants, optimizing processes and resources.
Those who are laid off will receive all the benefits due to them under the law as well as additional ones, such as psychological, financial and legal counseling for 12 months. They can access help in developing resumes, initiating processes of interviewing at other companies and even advise on starting their own businesses.