MEMO: RJR NABISCO PLANS TO CUT 5 PERCENT OF TOBACCO JOBS

RJR Nabisco plans to cut costs and bolster sales of its cigarettes by eliminating about 5 percent of its domestic tobacco jobs and moving its international tobacco headquarters to Switzerland.

Virtually all of the 575 job cuts announced Friday will be in Winston-Salem, N.C., where RJR's R.J. Reynolds Tobacco business is based.

RJR said the actions would reduce earnings by $160 million in the fourth quarter. By 1997, the company said the moves should begin generating more than $150 million a year in extra income.