Reynolds American Incorporated is reducing its U.S. work force. Nationwide, it employs 5,400 people. But by 2014, that number will drop by 10 percent.
The reduction is in response to a three-month business analysis on how to keep the company competitive.
The move will reduce spending by $70 million a year for the Winston-Salem, N.C.-based maker of Camel, Salem and other brands.
Company Spokesman David Howard would not specify how many positions will be eliminated, but confirms it includes salaried and hourly workers.
"The majority of people leaving the companies will be doing so on a voluntary basis. The bottom line is that we have made decisions that are right for our businesses and right for our employees in the short and long term," said Howard.
According to Howard, workers will get a severence package including two weeks of pay for every year of service - up to 78 weeks of pay. The company will also cover half the cost of COBRA medical insurance for six months.
