Reynolds American Inc. Announces Changes in U.S. Manufacturing Operations

  • Reynolds American Inc. reducing its U.S. manufacturing footprint by 2025
  • More than half of impacted employees at closing facilities will have an opportunity to transfer sites; full-time employee workforce reduced by approximately 350 roles by 2025
  • Company offering comprehensive severance and medical benefit continuation package to displaced employees as well as outplacement support

WINSTON-SALEM, N.C. – March 24, 2022 – As a part of Reynolds American Inc.’s (“Reynolds”) effort to transform the company and position it for future growth, today the company announced it recently concluded a detailed strategic review of its U.S. 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 next month and progressing through 2024, the company has announced:

  • Santa Fe Natural Tobacco Company, Inc.’s operations in Oxford, N.C. will move to Tobaccoville, N.C.
  • American Snuff Company, LLC’s (ASC) operations at Taylor Brothers in Winston-Salem, N.C. will move to Tobaccoville, N.C.
  • ASC’s Traditional Oral operations in Memphis, Tenn., will move to Clarksville, Tenn.

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.

“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.”

 

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About Reynolds American Inc.

Reynolds American Inc. is an indirect, wholly-owned subsidiary of the BAT Group, and the U.S. parent company of R. J. Reynolds Tobacco Company; Santa Fe Natural Tobacco Company, Inc.; American Snuff Company, LLC; R. J. Reynolds Vapor Company, and Modoral Brands Inc. To learn more about Reynolds American Inc. and its operating companies, please visit www.reynoldsamerican.com.