WINSTON-SALEM, N.C. — Reynolds American Inc. will cut 350 manufacturing jobs in the next three years as the tobacco company moves its operations.
Company leaders made the announcement on Thursday. Reynolds said beginning in April and through 2024, three of its facilities will be relocated. The American Snuff Company operations at Taylor Brothers in Winston-Salem, NC will move to Tobaccoville.
Winston-Salem Mayor Allen Joines said it's sad to see companies have to downsize, but he understands they need to do what's best for their operation.
"You never want to hear about any potential job losses in your community, we do, however, understand the need for a company to maintain their facilities and keep their operation viable," he said.
The Santa Fe Natural Company operations in Oxford, NC will also move to Tobaccoville.
"For folks here in Winston, that’s not a big shift. For the folks down in Oxford down in the eastern part of the state, I think it would be a much more difficult thing," he said, "But I think the good news is it’s a very aggressive job market right now in terms of opportunities for individuals and there's services that will be provided from the company, as I understand it, as well as our own governmental agencies."
The ASC's Traditional Oral operations in Memphis, TN will move to Clarksville, TN.
Reynolds said more than half of impacted employees at closing facilities will have the opportunity to transfer sites.
The company said it will cut its full-time workforce by about 350 jobs by 2025. Reynolds said the job cuts impact manufacturing sites and not the corporate office building in Winston-Salem.
“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,” Guy Meldrum, President, and CEO of Reynolds, said.
Reynolds said it will offer severance and medical benefit packages to displaced employees and help them find new jobs.
Joines said despite the reduction in manufacturing operations, the company will continue to have a presence in the community.
"Reynolds has played a major role in the development of our city not only in the jobs but the philanthropic areas as well. You see things like Reynolds auditorium, Reynolds High School, the foundations that they left here, the Kate B. Reynolds Foundation, and things like that so they play a huge role in the growth of our city and continue to do so," he said.