RAI - R.J. Reynolds Tobacco employees will be leaving by 2011..

December 16, 2009 - Reynolds American Inc. (RAI) said it plans to take a charge of approximately $47 million in the fourth quarter of 2009 in connection with severance and related costs for about 400 R.J. Reynolds Tobacco Company employees who will be leaving the company by 2011.

Tommy L. Hickman, senior vice president of operations for R.J. Reynolds: “The company benefits from additional streamlining that will better align our staffing level with business requirements and enable our manufacturing operations to phase in new productivity programs over time.”

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

Reference: Reynolds American to take charge of approximately $47 million related to workforce reduction, Reynolds American, Inc., 12/16/2009.