(WINSTON-SALEM) -- Reynolds American has concluded its three month business analysis and the results will lead to a workforce downsizing of about 10 percent. The workforce reduction for the Winston-Salem based cigarette maker is expected to be complete by 2014.

"As a result of the business analysis some jobs have been eliminated, some have been outsourced and due to the number of volunteers leaving the company we will be actually rehiring for some positions in the future and of course that will be happening over the next two to three years," said  Reynolds spokesman, David Howard.

The reduction in positions will have an expected savings of around $25 million dollars by the end of this year and $70 million annually by 2015, according to Howard. Severance, benefits and related costs associated with the workforce reduction will be around $110 million.

(Thanks to: WSJS)