Details of Reynolds American's restructuring

Reynolds American Inc., parent of the nation's second-largest tobacco company, said Tuesday it would cut about 570 jobs, or about 10 percent of the American work force.

WHY: Reynolds American and subsidiary R.J. Reynolds Tobacco Co. plan to focus on core businesses, including the growing smokeless segment, as cigarette sales volumes decline in the U.S.

SAVINGS: The company expects to save $100 million by the end of 2010 and $55 million a year after that.

PINK SLIPS: Employees will begin losing their jobs in the third quarter, but some cuts will take until the end of 2009. Job losses could come in all areas except sales and marketing positions outside headquarters and production workers in Winston-Salem, N.C.

BRAND MANAGEMENT: The company is reducing its marketing spending on Kool menthol brand cigarettes, while boosting what it spends on Camel brand menthol products. Pall Mall will remain one of the company's growth brands.

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Reynolds American to cut 570 jobs, realign brands

Associated Press

Mon Sep 8

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