MEMPHIS, Tenn. — A week after announcing corporate layoffs across the company, International Paper announced that they would cease operations of four factories across the United States.
International Paper officials said that operations at four packaging facilities would cease on or before Dec. 18, 2024. Those facilities are in Cleveland, Tennessee; Kansas City, Missouri; Rockford, Illinois; and Statesville, North Carolina.
"As we shared last week, International Paper is undergoing a transformational journey to become a stronger, more profitable sustainable packaging solutions company," a release said. "A critical step in this journey is to organize our teams and resources to create the most value for customers and shareholders."
Company officials said that all employees would be offered severance packages and can apply for positions at other facilities.
"We have completed a plan to ensure a seamless transition of production at the affected facilities to other IP locations and will work closely with our customers throughout this process to ensure they continue to receive the high service levels they expect from us," the release said. "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."
IP officials announced previously that 650 jobs would be cut from the corporate sphere, including 400 in Memphis.
Company officials did not share more information on the layoffs in Memphis.
The company, which is headquartered in Memphis, saw shutdowns in multiple states for plants in Texas, North Carolina and Florida in 2023, which saw roughly 900 workers affected.
IP said a containerboard mill would permanently close in Orange, Texas, and leaving 17 mills in operation in North America. The Orange mill is expected to cease production by end of the year.
The shutdown of two pulp machines will happen at two plants – one in Riegelwood, North Carolina, and the other in Pensacola, Florida. The Riegelwood machine is expected to cease production by the end of the year, while the Pensacola machine is already idled and will not resume production.
The company said in total about 900 workers would be impacted between all three locations, which they hope to minimize by using current vacancies, retirements, and normal attrition.
In a statement, Memphis Mayor Paul Young previously said, "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. International Paper has stated that these layoffs were necessary to build a more robust organization; we believe their dedication to Memphis remains strong."
IP also laid off workers at a San Antonio paper plant earlier in October.
