As a part of Reynolds American Inc.’s (Reynolds) effort to transform the company and position it for future growth, the company has announced it recently concluded a detailed strategic review of its US operations and will be reducing its manufacturing footprint resulting in the closing of some sites.
Guy Meldrum, President and CEO of Reynolds, said, “These decisions are never easy. We are focused on delivering long-term, sustainable growth in a rapidly evolving environment. While these changes are necessary to support the future of our business, they will be extremely difficult for our employees at the manufacturing sites that are closing and today we are focused on providing support to them through this transition.”
Beginning in April and progressing through 2024, the company has announced: Santa Fe Natural Tobacco Company, Inc.’s operations in Oxford will move to Tobaccoville; American Snuff Company, LLC’s (ASC) operations at Taylor Brothers in Winston-Salem will move to Tobaccoville; ASC’s Traditional Oral operations in Memphis will move to Clarksville.
More than half of employees across the closing facilities will have the opportunity to transfer sites. These changes will reduce the company's full-time employee workforce by approximately 350 roles by 2025, Reynolds said in a press release. “After our review, it became clear that we had to align our manufacturing footprint with our growth strategies,” said Bernd Meyer, Executive Vice President of Operations at Reynolds. “Many of our employees will be given the opportunity to transfer sites. Our employees displaced through this process will receive a comprehensive severance and benefits package, including outplacement support to help as they transition to the next phase of their careers.”