Clearwater Paper Cuts 20% Workforce at Arkansas Mill, Seeks $8–12M Savings
Clearwater Paper is reducing salaried and hourly roles by roughly 20% and will operate its Cypress Bend, Arkansas mill at half capacity. The restructuring is projected to yield $8–12 million in annual cost savings without affecting shipment volumes.
1. Restructuring Decision & Job Cuts
Clearwater Paper has announced a restructuring at its Cypress Bend, Arkansas facility, reducing approximately 20% of salaried and hourly roles. The move addresses a supply-driven downturn and aims to realign operating rates with current market demand.
2. Production Capacity & Cost Savings
The company will operate the Arkansas mill at about half of its production capability, enabling annualized cost savings of $8–12 million. Management expects these measures will not disrupt shipment volumes to customers.
3. Employee Support Measures
Impacted employees will receive severance packages, healthcare subsidies and outplacement services, and the company will collaborate with the union through effects bargaining to ensure a fair transition.
4. Future Outlook for Cypress Bend Mill
Clearwater Paper plans to return the mill to full production when solid bleached sulfate industry conditions improve or by investing in swing CUK capabilities, leveraging the facility’s competitive cost structure for future growth.