Packaging Corp. to Cut 200 Jobs, Take $205M Charge for Mill Changes

Dow Jones12-04

By Stephen Nakrosis

Packaging Corp. of America will cut about 200 jobs and expects pre-tax restructuring charges of about $205 million for reconfiguring a container board mill.

The charges will consist of $165 million of non-cash impairment and accelerated depreciation charges, the company said Wednesday, and $40 million of cash charges for contract termination, severance and other charges. Packaging Corp. expects to record most of the charges in the fourth and first quarters.

The company said it intends to permanently shut down its No. 2 paper machine and the kraftpulping facilities at its mill in Wallula, Wash. Its wood fiber and purchased power costs at the mill are the highest in its system, meaning the mill as currently configured is no longer competitive.

The changes are expected to lower production costs at the mill by approximately $125 per ton from 2025 levels, the company said. The reduction in capacity will be replaced with production enhancements at other mills, Packaging Corp. added.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

December 03, 2025 17:27 ET (22:27 GMT)

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