International Paper Cuts 1,000 Jobs, Closes Two Mills; Stake Down 5.1%
International Paper closed two Georgia mills and cut over 1,000 jobs, contributing to a 9% drop in U.S. containerboard capacity over eight months. Allspring Global Investments trimmed its stake by 5.1%, selling 46,575 shares and holding 865,286 shares.
1. Containerboard Demand Declines
The containerboard industry, long a barometer of economic activity, has seen U.S. production capacity fall roughly 9% over the past eight months. International Paper’s U.S. box shipments dropped 5% year-on-year in the second quarter, marking a fourth consecutive quarterly decline, while Smurfit Westrock volumes slid 4.5%.
2. Mill Closures and Job Cuts
International Paper closed two Georgia mills and eliminated more than 1,000 jobs as demand softened, reflecting a broader trend of consolidation under the three largest box makers. These closures follow recent $20 billion and $9.9 billion mergers that concentrated capacity and allowed pricing stability despite lower volumes.
3. Stake Reduction by Major Investor
Allspring Global Investments reduced its position in International Paper by 5.1%, selling 46,575 shares and retaining 865,286 shares. This move signals cautious sentiment among institutional investors regarding the company’s near-term outlook.