News
Email
Print
R.J. Reynolds Tobacco to move out of historic building
Journal file photo
ADVERTISEMENT
Published: October 6, 2008
Updated: 10/06/2008 02:05 pm
Reynolds American Inc. said today that it will vacate the historic Reynolds Building by early 2010 as part of its continuing effort to balance consumer demand for its products with company size.
The company told employees of the consolidation move this morning. All of the company's downtown employees — both Reynolds American and R.J. Reynolds Tobacco Co. — will move into the Plaza Building.
The 20-story Reynolds Building opened in 1929 and has 239,781 square feet.
By comparison, the Plaza Building, which opened in 1982, has 449,150 square feet.
"We are beginning a process of analysis, input and planning for the best future use of the Reynolds Building that takes into account not only its practical usage but its historic significance to the community and the role it can play in downtown development," spokeswoman Maura Payne said.
"Several hundred employees will continue to work out of the Reynolds Building through 2009."
Payne said that if plans develop more quickly on a new use for the Reynolds Building, some employees could be moved to temporary sites outside both Reynolds buildings.
"At this stage in planning, everything is on the table," Payne said.
"The Reynolds Building can be a tremendous facility for other businesses or even other uses, so we're going to spend the next several months evaluating options. We're planning on seeking input from community stakeholders and people with experience in redevelopment of large historical properties."
Reynolds announced on Sept. 9 that it was cutting 570 white-collar jobs at Reynolds American and R.J. Reynolds Tobacco by the end of 2009.
Of the 570 cuts, 320 are involuntary and 250 voluntary. Employees eligible for retirement and retiree health benefits represent 90 percent of the 250 who volunteered to leave, Jan Smith, a senior director of communications for Reynolds, said at the time of the job-cut announcement.
The company said that it expects to have 650 employees from the parent company and the subsidiary in the Plaza Building, as well as 200 contract employees.
"All the Reynolds American and Reynolds Tobacco employees, as well as our on-site contractors, will not fit in the Reynolds Building," Payne said. "The Plaza Building's flexible layout and larger floors enables us to physically position work groups together, whereas the Reynolds Building cannot accommodate some of our larger departments all on one floor."
Since 1983, the company has eliminated about 80 percent of its local work force through at least 16 job-cut announcements, going from 15,500 full-time workers to 3,130 once the latest job cuts are completed by early 2010.
The company will have about 5,080 jobs overall, including 2,100 in field-sales marketing jobs and 1,900 in production. Employees at Conwood and Santa Fe Natural Tobacco Co. — both makers of innovative tobacco products — were not affected, either
When the Reynolds Buildings is vacated, it will present downtown Winston-Salem with another challenge in its revitalization efforts.
The downtown community continues to try to absorb space in Winston Tower, a former Wachovia Corp. headquarters site, and the Wachovia Center, the headquarters for the bank before it was bought by First Union Corp. in September 2001.
The vacancy rate for Class A office space, typically in newer buildings, decreased to 13.2 percent in July from 16.2 percent in January, according to the most survey by Michael Clapp of Michael S. Clapp & Associates Inc.
The vacancy rate in Class B office space remained about the same. Vacancies for Class B office space, typically in older buildings, decreased slightly to 25.1 percent in July, compared with 25.2 percent in January.
Payne said that Reynolds is consolidating into the Plaza Building as part of its latest restructuring effort that began in August.
At that time, Reynolds said it was shuffling resources toward different operational units, such as a "new growth and innovations organization." Jan Smith, a Reynolds spokeswoman, said that the new growth and innovation organization brings together employees from different business units to share expertise and suggestions on trends, brands and consumers.
"We have spent four years building a culture that centers on collaboration, productive exchange of ideas, simplification of processes, etc.," Payne said. "Obviously, that can best be fostered in an environment where work teams are physically located together.
Email
Print
ADVERTISEMENT
N.C. Politics
Federal Politics
See community events or add your own! Click here!
Advertisement
