Memphis Faces Job Cuts as International Paper Announces Layoffs
In a surprising turn of events affecting the local workforce, International Paper, one of Memphis’s largest employers, revealed plans to lay off about 650 employees company-wide, with a staggering 400 of those positions based in our city. This represents approximately 19% of the company’s workforce in Memphis, a significant impact on the community.
According to Amy Simpson, communications manager for International Paper, the company is embarking on a transformational journey aimed at enhancing its growth and profitability. “International Paper is undergoing a transformational journey to become a stronger, more profitable sustainable packaging solutions company,” Simpson explained. “A critical step in this journey is to organize our teams and resources to create the most value for customers and shareholders.”
Unfortunately, this restructuring process means that many dedicated employees will face job loss. Simpson stated that most of the affected workers will part ways with the company by the end of this year, with communication regarding these layoffs beginning this month. While specific details about which jobs will be eliminated have yet to be disclosed, the impact is sure to be felt throughout the Memphis community.
Support for Departing Employees
For those facing the loss of their positions, International Paper is committed to offering support. “We will provide severance packages, outplacement assistance and mental health resources to all affected employees,” Simpson assured. “We greatly appreciate the many contributions our departing team members have made during their time with IP.” After the layoffs, the company’s workforce in Memphis will shrink to roughly 1,700, part of a global team of about 39,000 employees.
The impact of these layoffs stretches beyond just the employees affected. Local organizations like the Greater Memphis Chamber are voicing their sentiments as well. In their statement, they recognized International Paper as an important part of the Memphis business landscape and expressed gratitude for the global headquarters being located in the city. “IP will remain committed to being a force for good in our community and a strategic partner in the continued growth of our city,” they noted.
Recent Corporate Developments
This announcement comes amid a backdrop of significant corporate activity. Earlier this year, International Paper agreed to an all-share deal to acquire London-based DS Smith for $7.2 billion, a deal that shareholders just approved. The expected completion of this acquisition is anticipated in the fourth quarter of 2024, which may bring about further changes to the company’s structure and workforce requirements.
The company’s leadership is also undergoing shifts, with the recent appointment of Andy Silvernail as the new board chairman, replacing Mark Sutton who retired earlier this year. These changes at the helm coincide with International Paper’s upcoming financial reports, with third-quarter earnings anticipated to be announced on October 31.
Looking Ahead
As Memphis grapples with these impending layoffs, the city’s resilient spirit will surely play a role in helping affected employees navigate this challenging time. Community support systems, local organizations, and fellow residents stand ready to offer assistance and lift each other up. The news may be bittersweet for many, but the commitment to fostering a supportive community remains strong.
As we await more details on these developments and the broader implications for Memphis, our thoughts are with the employees impacted and their families. Change can be challenging, but the strength of this community shines brightly even in tough times.
