**International Paper Announces Corporate Overhead Restructuring Plan**

On October 15, 2024, International Paper Company (NYSE: IP) revealed its corporate overhead restructuring plan in a recent SEC filing. The restructuring aims to streamline operations, improve the organizational structure, and align the workforce more effectively with the company’s operational needs and customer requirements.

As part of the plan, the company is set to reduce its workforce by approximately 650 employees. Affected employees will be eligible for severance packages and other termination benefits under the Company’s Salaried Employee Severance Plan, inclusive of outplacement services. However, these benefits are subject to the signing and non-revocation of a separation agreement, including a general release of claims against the company.

International Paper estimates that it will incur total pre-tax restructuring charges of roughly $80 to $100 million related to one-time severance payments and other employee termination benefits. The company anticipates recording around $50 million of these charges in the third quarter of 2024, with an additional $30 to $50 million likely in the fourth quarter of the same year. The majority of these charges will be in the form of cash payments, with plans to disburse most of them in the first quarter of 2025. It is important to note that these estimates are based on assumptions and actual results might vary.

The disclosure in the filing indicates caution in interpreting these figures as forward-looking statements. The statements reflect current management perspectives and are subject to risks and uncertainties that could potentially alter actual results and event timelines. These risks include industry, global, economic conditions, and other factors impacting the company’s operations.

Furthermore, the report hints at potential additional restructuring and cost-cutting measures and related charges in the future. Investors are advised to take into consideration the risks and uncertainties associated with International Paper, detailed in the Company’s previous filings with the SEC.

International Paper Company will not commit to updating these forward-looking statements in the future unless required by new information, future occurrences, or shifts in expectations.

This SEC filing signed by Joseph R. Saab, International Paper Company’s Senior Vice President, General Counsel, and Corporate Secretary on October 21, 2024, outlines the company’s proactive approach to enhancing its operational efficiency and aligning its workforce with its strategic goals and market demands.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read International Paper’s 8K filing here.

International Paper Company Profile

International Paper Company produces and sells renewable fiber-based packaging and pulp products in North America, Latin America, Europe, and North Africa. It operates through two segments, Industrial Packaging and Global Cellulose Fibers. The company offers linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft; and pulp for a range of applications, such as diapers, towel and tissue products, feminine care, incontinence, and other personal care products, as well as specialty pulps for use in textiles, construction materials, paints, coatings, and others.