Reynolds American to Cut Jobs, Record Charge - TheStreet

Reynolds American to Cut Jobs, Record Charge

The work force reductions will generate savings of about $100 million by the end of 2010, with annualized savings of about $55 million thereafter.
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Reynolds American

(RAI)

is eliminating 570 jobs and planning to take a $55 million after-tax charge as it bids to cut costs and focus on its most competitive brands.

The Winston-Salem, N.C., cigarette maker said the work force reductions will generate savings of about $100 million by the end of 2010, with annualized savings of about $55 million thereafter.

The moves will affect both Reynolds American and its largest subsidiary, R.J. Reynolds Tobacco.

Reynolds American is evaluating the potential impact of the restructuring, as well as other changes in its business programs, on its 2008 outlook.

Shares of Reynolds American were down 0.7% Tuesday.

This article was written by a staff member of TheStreet.com.