International Paper (IP) stock was up on Friday after the packaging company announced job cuts. As part of strategic changes, the company will cut 1,100 jobs in the U.S. This comes alongside the permanent closure of its Savannah, Ga. containerboard mill, Savannah, Ga. packaging facility, Riceboro containerboard mill, and Riceboro Timber and Lumber. It also said it will spend $250 million to convert the #16 machine at the Riverdale mill in Selma, Ala. to produce containerboard.
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International Paper said it will continue to support employees throughout the layoffs. This includes severance packages and outplacement assistance. Both hourly and salaried workers are affected by these layoffs.
Tom Hamic, Executive Vice President and President of International Paper’s North America Packaging Solutions business, addressed the layoffs. He stated, “While difficult, these decisions are essential to positioning International Paper for long-term success, enabling us to focus on the geographies, customers, and products where we can create the most value. Our investment in the Riverdale mill reflects our commitment to delivering high-quality, reliable service while strengthening our advantaged cost position.”
International Paper Stock Movement Today
International Paper stock was up 0.4% on Friday after the company announced the layoffs. Shares of IP stock have fallen 7.62% year-to-date and 1.78% over the past 12 months. With major economic concerns such as inflation and tariffs, it makes sense that International Paper would reevaluate its operations at this time.
Is International Paper Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for International Paper is Moderate Buy, based on five Buy, three Hold, and a single Sell rating over the past three months. With that comes an average IP stock price target of $54.63, representing a potential 13.32% upside for the shares.
