news-record.com

WINSTON-SALEM — Reynolds American Inc. said today it will take a charge of about $47 million in the fourth quarter to pay for severance and related costs for about 400 R.J. Reynolds Tobacco employees who are taking buyouts.

The 400 employees are production associates who had asked that their job be considered for elimination, according to a company news release. The company said earlier this month that it planned to reduce its manufacturing work force by an undisclosed number to lower expenses.

Job eliminations will begin in January, and most will be completed during 2010, the company said today. A few employees will have release dates in early 2011.

"No jobs were eliminated unless an employee asked that they be considered for elimination, and we were able to accommodate the wishes of every employee who asked to be considered," stated Tommy L. Hickman, senior vice president of operations for R.J. Reynolds.

R.J. Reynolds expects to achieve cost savings of approximately $17 million in 2010, which will increase to about $30 million in 2011, as a result of the cuts.

Hickman said employees leaving the company will receive two weeks of pay for every year of service, up to a maximum of 78 weeks, along with other retirement- and benefits-related payments.