World’s largest paper company to close California facility, laying off 71 employees

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CALIFORNIA – International Paper notified the California Employment Development Department (EDD) that it would be laying off 71 employees.

The company is closing its container facility in Buena Park as part of broader consolidations that have affected roughly 2,500 employees across the United States.

International Paper operates worldwide with approximately 65,000 team members across offices and facilities in more than 30 countries.

It will cease production at its Buena Park facility by August 2, according to an email from Amy Simpson, International Paper’s head of corporate communications and marketing.

The company “completed a strategic assessment of the region and decided the capacity of this facility could be incorporated into other nearby facilities without customer interruption.” 

CEO called underperformance ‘unacceptable’

International Paper currently operates at least a dozen or so facilities in California – including six container plants, an ink-blending facility, a retail packaging center, a bulk distribution site, and multiple recycling centers.

The company said it will support affected employees and customers during the transition. Impacted workers are eligible to apply for jobs posted at other company facilities.

International Paper CEO Andy Silvernail, who joined the company in May 2024, launched an “80/20” cost-cutting plan based on the Pareto principle – that 80% of outcomes come from 20% of efforts.

After the company’s Q2 2024 packaging volumes lagged the market, Silvernail called the underperformance unacceptable and vowed to fix it. He cited a need for clearer metrics and more investment. 

WARN helps workers prepare for job losses

International Paper issued a Worker Adjustment and Retraining Notification (WARN) ahead of closing its Buena Park facility alerting employees and state officials.

This formal notification helps employees prepare for job losses and gives the community time to manage the economic impact of the closure.

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