Layoffs tick up in October, led by International Paper and O-I Glass

Following a relatively calm summer, packaging industry layoffs ticked up in October.

A couple of major players disclosed multiple rounds of layoffs and facility closures. Here are the headcount and facility changes Packaging Dive tracked for October:

Dart Container is laying off employees at two California facilities: 100 people in Corona and 75 in Lodi, according to separate filings with the state. The departures will occur in late December. Both of those locations produce expanded polystyrene food service items, and the company blames the permanent closures on upcoming provisions of SB 54 — which take effect Jan. 1 — that could prohibit the sale, import and distribution of most EPS food service products in the state, according to Plastics News.
International Paper disclosed a series of layoffs last month affecting about 1,700 employees. Cuts will occur by the end of this year at the mill, converting and corporate levels in states including Illinois, Missouri, North Carolina, South Carolina, Tennessee and Texas. The company recently underwent a corporate restructuring and still is undergoing a transformation to become stronger and more profitable, according to a spokesperson. The changes come after new CEO Andy Silvernail announced this summer a reset to streamline IP.
O-I Glass also disclosed a series of closures and cost-cutting measures that will affect hundreds of employees in a variety of roles. Company executives announced on their third-quarter earnings call last week that they are evaluating the closure of 7% of O-I’s current capacity by mid-next year.
PPC Flexible Packaging will permanently close a plant in Alliance, Ohio, and eliminate all 68 positions. Some employees might transfer, according to the company’s WARN notice filed with the state. The first layoffs will occur around Jan. 3, 2025, and are expected to be complete by late March.

Other updates:

Sonoco previewed further facility closures, as well as a pending divestiture, in China. So far this year the company has closed paper mills in Washington state and Greece, two industrial converted products facilities in China and another in Canada, according to securities filings.
Metsä Board Corp. said it will initiate negotiations for potential temporary layoffs of 1,100 employees. The Finland-based company indicated the layoffs would take place in that country at several paperboard and bleached chemi-thermomechanical pulp mills for a maximum of 90 days, and they could occur in multiple waves during 2025. Metsä expects to release further details next year.
PepsiCo announced nearly 450 layoffs resulting from bottling plant closures in Atlanta; Chicago; Cincinnati; and Harrisburg, Pennsylvania. Last month, the company also lowered its sales outlook for 2024 as consumers pull back on beverage and snack purchases.
Styropek will move ahead with the planned idling of a site in Monaca, Pennsylvania, according to Plastics News. The expanded polystyrene resin manufacturing facility’s closure will affect at least 140 employees.