Major Workforce Reductions Announced as International Paper Restructures Operations in Memphis

Major Changes Ahead for International Paper in Memphis and Beyond

MEMPHIS, Tenn. — Change is in the air at International Paper (IP) as the company gears up for a significant transformation. Just last week, they announced the tough decision to lay off around 650 employees in various sectors, with about 400 jobs affected in Memphis alone. To add to the news, IP has revealed plans to cease operations at four packaging facilities across the United States by December 18, 2024. This tough call is part of a broader strategy aimed at turning International Paper into a stronger, more sustainable packaging solutions provider.

What’s Going to Happen?

According to company officials, the closures will impact facilities located in Cleveland, Tennessee; Kansas City, Missouri; Rockford, Illinois; and Statesville, North Carolina. The company noted, “a critical step in this journey is to organize our teams and resources to create the most value for customers and shareholders.” While these decisions were not made lightly, they promise that the company is committed to a seamless transition for the affected employees.

All employees impacted by the facility closures will reportedly be offered severance packages, providing some support during this challenging transition. Furthermore, they will have the opportunity to apply for positions at other IP locations, allowing some to remain within the company if they wish. It’s a small glimmer of hope for those facing uncertainty.

Changes on the Production Line

IP officials are assuring customers that production will be smoothly transferred to other facilities. The plan is to maintain high service levels, which customers depend on, during this transition period. The closures align with IP’s goal to shift resources and enhance investments in locations that can deliver improved quality, reliability, and service.

What About Memphis?

As mentioned before, Memphis is experiencing significant cutbacks too, with 400 corporate employees facing layoffs. The company has not provided many details about the specifics of the layoffs in Memphis, making this a particularly nerve-wracking period for those affected. The company’s headquarters is in Memphis, and the ripple effect of these layoffs will undoubtedly be felt throughout the local economy.

Mayor Paul Young expressed empathy toward those losing their jobs, saying, “We deeply feel the impact of every job loss in our city, even when the ultimate intent is to strengthen the profitability and health of the company making the cuts.” This sentiment reflects the community’s concern as many families and individuals brace for what these changes mean for their livelihoods.

Looking Back at Recent Closures

In the past year, IP has also closed operations in other states, including Texas, North Carolina, and Florida, impacting a total of about 900 workers. Among the notable closures is a containerboard mill in Orange, Texas, which is set to permanently shut down its operations by the end of the year. Additionally, two pulp machines are being idled at plants in Riegelwood, North Carolina, and Pensacola, Florida, further squeezing the workforce in those areas.

In total, IP is looking at significant workforce reductions, but the company hopes to ease the transition through retirements, current job vacancies, and normal attrition. It’s certainly a challenging time for affected workers, but there is an intention to provide support where possible.

In Conclusion

International Paper’s plans are part of a significant restructuring aimed at enhancing the company’s profitability and sustainability. While the road ahead is uncertain for many employees, the company is committed to transitioning responsibly, working closely with their customers, and bolstering operations where it counts most.

Author: HERE Memphis