R.J. Reynolds to Cut 40% of Workforce

R.J. Reynolds Tobacco (RJR Quote) will take a third-quarter charge and eliminate 40% of its workforce as part of a restructuring plan the company announced Wednesday.

The job cuts cover 2,600 workers and are a component of the company's goal to reduce its cost structure by $1 billion by the end of 2005.

Reynolds will record a charge of about $340 million in the third quarter, primarily associated with the workforce reduction. The company also revised its full-year earnings guidance downward to reflect this charge, which will be partially offset by cost savings in 2003. ...