Reynolds American plans to eliminate 10 per cent of its U.S. workforce, or about 540 jobs, in the next three years as demand for cigarettes slumps, the company said.

The reductions, including salaried and hourly positions, will result in a pretax restructuring charge of about USD 110 million (EUR 84 million) in the first-quarter for severance, benefits and related costs, said the second- largest U.S. tobacco company a statement on 14 March.
The job cuts will enable Chief Executive Officer Daniel Delen to reduce annual costs by USD 25 million this year and USD 70 million a year in 2015.
Reynolds’ share of U.S. cigarette sales slipped to 27 per cent in the fourth quarter 2011, down 1.1 percentage points from a year earlier, as shipments tumbled 7.4 per cent.
Most of the departures of employees are voluntary, Reynolds said. As of 31 December 2011, the company had about 5,400 workers. (pi)