Graphic Packaging implements cost and production optimization initiatives

Graphic Packaging (GPK) announced additional details on its support function and production optimization plans. As disclosed on the company’s third quarter 2025 earnings conference call, Graphic Packaging has undertaken a review of support functions and corporate expenses and now expects savings of approximately $60M in staffing and other cost reductions in 2026. Graphic Packaging is working closely with employees affected by these actions to provide employment placement assistance and support. Severance and other one-time costs and non-cash charges associated with these initiatives are expected to be in the range of $20M. The company also announced additional actions to reduce inventory in the fourth quarter. With the Waco, Texas recycled paperboard manufacturing facility startup ahead of schedule, the company plans to accelerate certain inventory reduction plans into the fourth quarter that were originally planned for 2026. Production curtailment is expected to impact fourth quarter operating results by $15M, which is in addition to the $15M relating to curtailments announced during the third quarter earnings call.