NEW YORK (AP) — Cigarette and tobacco producer Reynolds American Inc. says it will eliminate 10 percent of its U.S. jobs, effecting about 540 workers, by the end of 2014.
The move will reduce spending by $70 million a year for the Winston-Salem, N.C.-based maker of Camel, Salem and other brands.
Reynolds, the second-biggest U.S. tobacco company, says most departures will be voluntary. The company expects to take about $110 million in severance and other charges in the first quarter, and expects to save about $25 million from the cuts this year. That total will rise to $70 million annually by 2015.
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The company had about 5,400 employees at the end of 2011.
Reynolds says it is making the cuts so it will have the resources to maintain growth for its key brands.
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