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RJR NABISCO ANNOUNCES RESTRUCTURING PROGRAM AND CHARGE

 NEW YORK, Dec. 7 /PRNewswire/ -- RJR Nabisco Holdings Corp. (NYSE: RN) today announced that it will implement a restructuring program to streamline operations and improve profitability.
 Charles M. Harper, chairman and chief executive officer of RJR Nabisco, said, "Our restructuring program is intended to improve margins in both the tobacco and food businesses, so we can resume our earnings growth track next year."
 The company expects to incur an after-tax restructuring charge in the fourth quarter of $445 million or $.32 per fully diluted share. Harper said the restructuring will enhance the company's net income in future years by an average of $250 million annually.
 The major component of the charge is a company-wide workforce reduction of approximately 6,000 employees. RJR Nabisco said the workforce reductions are spread among administrative, sales and distribution, and operations employees in both the tobacco and food operations. Worldwide, RJR Nabisco has 63,000 employees.
 Other components of the charge include reductions in corporate expenses, promotion and merchandising programs, and manufacturing cost improvements.
 RJR Nabisco said that although its domestic tobacco results for 1993 reflect the unsettled business environment for the entire industry, the company has seen some indications of returning stability. The company noted that, excluding domestic tobacco, nine-month operating income from continuing businesses was up 16 percent.
 "We are meeting our near-term challenges effectively," Harper said. "But perhaps most importantly, with 1993 almost behind us, we are setting the stage for earnings growth in 1994."
 RJR Nabisco Holdings Corp. is the parent company of RJR Nabisco, Inc., an international consumer products company. RJR Nabisco's major operating units are R.J. Reynolds Tobacco Co., R.J. Reynolds Tobacco International, Inc., the Nabisco Foods Group, and Nabisco International, Inc.
 -0- 12/7/93
 /CONTACT: Carol J. Makovich of RJR Nabisco, 212-258-5785/
 (RN)


CO: RJR Nabisco Holdings Corp. ST: New York IN: TOB SU: RCN

BN-BR -- AT006 -- 1296 12/07/93 12:54 EST
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Publication:PR Newswire
Date:Dec 7, 1993
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