Memphis, Tennessee based International Paper (IP) will be laying off hundreds of workers in connection with plant closures in Illinois, Missouri, North Carolina and Tennessee.
The disclosure comes on the heels of 650 layoffs at its headquarters and a plant in Texas. IP filed a WARN notice with the state of Tennessee on October 21 disclosing the permanent closure at their facility in Cleveland, Tennessee, with 115 workers affected.
There are no bumping rights since the closure is permanent.
“The plan is that the machines and associated operations will permanently shut down by the middle of December 2024,” the statement read.
“The first employees will begin terminating employment on or about December 16.”
The North Carolina WARN notice indicated the permanent closure of an IP container plant in Statesville affecting 74 employees.
IP confirmed the closure of a Kansas City, Missouri facility, laying off 150 workers and an unspecified number of employees at a plant soon to close in Rockford, Illinois, according to media reports.
IP spokesperson Amy Simpson said that IP is undergoing a transformation to become stronger and more profitable by shifting resources and increasing investments in facilities where they can serve customers through improved quality, reliability and service delivery.” Earlier this month, IP obtained shareholder approval for its $9.9 billion acquisition of DS Smith.
IP will pay $80 to $100 million in severance and termination benefits, according to media reports.
IP announced 650 layoffs earlier this month representing about 400 at its headquarters and another 89 at a corrugated sheet plant in San Antonio, Texas, that is also closing.
In his first Q2 earnings call, new CEO Andrew Silvernail outlined a new strategy focused on 80/20 principle after noting IP’s poor performance in recent years.
Former CEO Mark Sutton expressed regret in a Q4 earnings call in 2023 that IP didn’t invest more in plant equipment prior to the Covid-19 pandemic.In recent weeks in response to the areas affected by Hurricane Helene in Georgia and Tennessee, IP said it was supporting employees affected by the storm through its Employee Relief Fund and supporting the American Red Cross and United Way Worldwide and making in-kind product donations.
https://boardconvertingnews.com/ip-laying-off-hundreds-closing-plants-in-four-states/
Comments are closed.