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IP cuts more jobs
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July 12, 2001: 4:43 p.m. ET
World's biggest paper maker shuts machines in Savannah, New York
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NEW YORK (CNNfn) - International Paper Co. plans to shut down paper-making machines in Georgia and New York, reorganize its forest resources business, cut hundreds of jobs, and take a second-quarter charge, the company said Thursday.
International Paper, the world's largest paper and forest-products company, will shut three machines in Savannah, Ga., resulting in about 290 job cuts. It will also shut down one machine in Corinth, N.Y., resulting in about 225 job cuts.
"These are difficult decisions impacting mills with a significant history for our company," said John Dillon, the company's chief executive officer. "However, the strong dollar has continuously weakened our export business in containerboard, while increasing imports of coated paper."
Click here for more on layoffs
Dillon said shutting down the machines would allow the mills in Savannah and New York to better match production with customer demand.
The Stamford, Conn.-based company also plans to reorganize its forest resources business, resulting in about 140 more job cuts.
The actions announced Thursday will result in an unspecified charge in the second quarter. International Paper is scheduled to report earnings on July 17.
The latest job reductions are in addition to the approximately 3,000 cuts the company announced in late June and 375 cuts announced in April. The company has been looking for ways to cut costs in the face of an economic slowdown this year that led to dismal first-quarter earnings that fell 90 percent from the first quarter 2000.
International Paper (IP: Research, Estimates) shares closed Thursday up $1.01 at $38. 
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International Paper
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