International Paper to close facilities in 4 states, lay off hundreds | Packaging Dive

The recently disclosed layoffs will occur in Illinois, Missouri, North Carolina and Tennessee in mid-December. These are in addition to 650 layoffs confirmed last week.

International Paper on Monday confirmed hundreds of layoffs related to newly disclosed facility closures in Illinois, Missouri, North Carolina and Tennessee. This follows the company last week confirming 650 layoffs across its headquarters and a separate manufacturing site in Texas, which are part of a “transformational journey” to become more profitable.

A WARN notice posted in Tennessee on Monday detailed the permanent closure of a container plant in the city of Cleveland, which is near Chattanooga. A total of 115 workers there will be affected. Workers at that facility are represented by the USW Local 1337. There will not be bumping rights because this is a permanent closure.

A WARN notice that the state of North Carolina posted on Friday also noted a permanent closure at a container plant in Statesville. It will affect 74 employees.

The company confirmed via email Monday that it is closing a packaging facility in the Kansas City, Missouri, area and will lay off 150 employees. Additionally, it confirmed plans to close another packaging facility, in Rockford, Illinois, affecting an unspecified number of employees.

Operations at the four facilities will end on or by Dec. 18, according to spokesperson Amy Simpson.

Referencing IP’s transformation to become stronger and more profitable, Simpson said, “A critical step in this journey is to organize our teams and resources to create the most value for customers and shareholders. As a result, we made the difficult decision to cease operations” at the four sites. “The decision to close these facilities was difficult but these actions will allow us to shift resources and increase our investments in facilities where we can best serve our customers through improved quality, reliability and service delivery.”

Employees at all affected locations can apply for other positions at the company. IP will offer departing employees severance packages, outplacement services and mental health resources, Simpson confirmed.

IP said it devised a plan to “ensure a seamless transition of production” from the closed facilities to others in the company’s network, but it did not disclose where. Simpson said the company will “work closely with our customers throughout this process to ensure they continue to receive the high service levels they expect from us.”

This builds on some 650 layoffs that International Paper confirmed last week. About 400 are slated for Memphis, Tennessee, where it’s headquartered, and 89 at a corrugated sheet plant that IP is closing in San Antonio, Texas.

During his first earnings call with the company in July, new CEO Andy Silvernail laid out planned business changes to overcome what he called a decade of performance declines. The strategy involves switching to an 80/20 operating model to reduce business complexity and invest in core priority areas, like the box business.

Earlier this month, International Paper shareholders voted to approve the company’s acquisition of DS Smith. The latter company’s shareholders also voted in favor earlier that week.

In October 2023, IP also announced a significant layoff, which affected 900 employees. It included the permanent closure of a containerboard mill in Orange, Texas, and the end of production at two pulp machines: one in Riegelwood, North Carolina, and another in Pensacola, Florida.

Editor’s note: This story has been updated with additional details from International Paper.