Reynolds American to Cut 10% of U.S. Jobs
NEW YORK (TheStreet) -- Tobacco company Reynolds American(RAI) will be cutting 10% of its U.S. work force before the end of 2014 as a result of a recently conducted business analysis.
The majority of that 10% are leaving Reynolds American on a voluntary basis, the company said in a statement. It added that some new employees will be hired when needed during that time period.
The staff reduction is expected to save the company about $25 million by the end of this year and $70 million annually in 2015.
"Our businesses' four key brands are all on a growth trajectory," said Daniel Delen, Reynolds American's CEO, in a statement. "In order to sustain that growth, we need to ensure we have the financial resources and employees aligned behind the right programs and processes. While this analysis was difficult because of the impact on jobs, we are pleased that the majority of people leaving the companies will be doing so on a voluntary basis.
Shares of Reynolds American ticked down 3 cents to $41.83 in premarket trading Wednesday.
-- Written by Alexandra Zendrian
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