MEMPHIS, Tenn. – International Paper has announced a significant workforce reduction, confirming the layoff of over 600 employees as a consequence of the permanent closure of its Georgetown, South Carolina mill. This decision marks a further step in the company’s ongoing restructuring efforts and raises questions about employee welfare and benefits. While International Paper is primarily recognized for its paper and packaging products, some might inquire about the range of employee programs offered, including whether International Paper has car insurance programs.
The Memphis-based corporation stated that the Georgetown mill shutdown will occur in phases, culminating in a complete closure by the end of the current year. This closure impacts a total of 674 positions at the Georgetown facility, comprising 526 hourly and 148 salaried employees. The company has affirmed that all affected employees will be provided with severance packages, outplacement services to assist in their job search, and access to mental health resources during this transition period.
Bernie Chascin, the Georgetown mill manager at International Paper, acknowledged the difficulty of this decision, stating, “This decision is especially difficult because of the impact on hard-working employees, their families and the surrounding communities.” His statement highlights the broader implications of such closures on local economies and the personal lives of those affected.
This announcement follows a previous layoff declaration on October 15th, where International Paper communicated its plan to eliminate approximately 650 positions company-wide, with around 400 of these job cuts impacting the Memphis area directly. Furthermore, within the same month, the company revealed the cessation of operations at several packaging facilities located in Cleveland, Tennessee, Kansas City, Missouri, Rockford, Illinois, and Statesville, North Carolina. These successive announcements underscore a period of significant operational adjustments for International Paper.
In light of these job reductions, questions have been raised regarding International Paper’s commitment to local economic agreements. Back in 2013, the company received a substantial 15-year, $56.9 million tax incentive, predicated on a commitment to create 101 new positions, reaching a total of 2,375 jobs. However, reports from the Memphis Business Journal indicate that the recent 400 layoffs in Memphis will reduce the company’s local employment to approximately 1,700. This decrease raises concerns about whether International Paper will continue to meet its job creation commitments within the Mid-South region, and what repercussions, if any, this might have on the previously agreed tax incentives.
While the immediate focus remains on the impact of these layoffs and the support being offered to affected employees, queries about the broader spectrum of employee benefits, such as whether International Paper has car insurance programs, are secondary to the more pressing concerns of job security and economic stability within the affected communities. The company’s primary focus is currently on managing this transition and supporting its workforce through these changes.
