Savannah – International Paper’s sweeping strategic changes in 2025 are sending shockwaves across global markets, local communities, and its 38,000-strong workforce. Once a steady industrial giant, the Memphis-based packaging leader is now in the midst of its most dramatic transformation in decades. But will these changes position International Paper (IP) for sustainable growth—or will the human cost overshadow the strategy?

“GCF is a strong business, and I’m pleased to see it transitioning to AIP, which is focused on investing in and growing industrial businesses,” said IP Chief Executive Officer Andy Silvernail. “Over the past few months, GCF has done the hard work of aligning resources with its most strategic customers, implementing an 80/20 mindset, and creating a simplified and focused portfolio. These actions, combined with its talented and committed team made it an attractive investment for AIP to enter the pulp market and have positioned GCF for long-term success under new ownership.”

While the company bills these moves as a strategic pivot to its core business, the sheer scale of International Paper’s strategic changes raises a critical question: Can this massive restructuring truly fortify the company for the future, or does it signal deeper turmoil in the paper and packaging industry?

Key Strategic Changes in 2025

1. Major Divestiture: A $1.5 Billion Exit from Cellulose

The most striking move is the sale of IP’s Global Cellulose Fibers (GCF) division to American Industrial Partners (AIP) for $1.5 billion. The deal involves nine facilities and 3,300 employees worldwide.

Despite generating $2.8 billion in revenue in 2024, the cellulose division no longer fits IP’s packaging-centric future. By exiting GCF, IP sharpens its focus on corrugated packaging, aligning with long-term e-commerce and sustainable logistics trends.

2. Facility Closures, Conversions, and Investments

International Paper’s restructuring changes 2025 in North America involve a combination of facility closures, sales, and one key repurposing.

The restructuring is brutal in scale.

• Closures: The Savannah containerboard mill, Riceboro mill, and Savannah packaging facility will all shutter, cutting into one million tons of annual capacity. The Red River (Louisiana), Phoenix (Arizona), Hazleton (Pennsylvania), St. Louis (Missouri), Marion (Ohio), and Wichita (Kansas) facilities are also closing.
• Repurposing: The Reno, Nevada site—once part of IP’s molded fiber business—will pivot entirely to packaging.
• Investment: A $250 million investment will convert the Riverdale mill in Selma, Alabama, into a modernized facility by 2026.

These moves will eliminate around 1,100 jobs in Georgia alone, with hundreds more elsewhere, underscoring how automation and footprint optimization come at a steep employment cost.

3. North American Restructuring

IP is exiting the molded fiber segment, while doubling down on packaging efficiency. In Mexico, the company is selling its Xalapa containerboard mill and two recycling plants to APSA, which has committed to keeping existing workers on site.

4. Expansion Amid Contraction

While closures dominate the headlines, IP is also planting seeds for future growth.

• Waterloo, Iowa: A new corrugated box plant broke ground in May 2025, designed to serve meat and protein packaging clients. It is expected to create 200 new jobs when operational in late 2026.
• Salt Lake City, Utah: Another facility has been announced, extending IP’s packaging reach into the western U.S.

5. European Realignment Post-DS Smith Deal

Following IP’s $7 billion acquisition of DS Smith in January 2025, regulators demanded divestitures. Several European corrugated plants will be sold, with Germany’s Palm Group emerging as a potential buyer.

In the UK, however, five sites will close outright, jeopardizing 300 jobs as IP consolidates operations.

Human Impact: 3,600 Jobs at Stake

Across North America, Europe, and other global sites, IP’s restructuring is expected to eliminate roughly 3,600 jobs by the end of 2025. This includes:

• 1,100 positions lost in Georgia mills and packaging facilities
• 297 layoffs in Memphis, Tennessee
• 300 jobs cut in the UK
• Hundreds more across Illinois, Missouri, North Carolina, Texas, and beyond

For affected communities, the closures mark the end of long-standing industrial legacies, raising questions about how regions dependent on manufacturing will adapt.