Graphic Packaging International (GPI) has launched a restructuring plan involving layoffs to reduce costs. The company publicly announced the plan after foreshadowing the move for months. The changes follow leadership shifts and a review of the company's organizational structure and business operations.
What happened
GPI initiated a restructuring and reduction in force to cut costs. The company had been assessing areas for cost reduction, with formal plans announced in December alongside the appointment of Robbert Rietbroek as CEO. The restructuring follows a 90-day review of the company's structure and operations with outside assistance from AlixPartners.
How many employees affected
The company plans to cut $60 million in costs in 2026, but the total number of employees affected by the current restructuring is not disclosed. However, as part of rightsizing its North American footprint, GPI ended production at its recycled paperboard plant in East Angus, Quebec, affecting 120 employees.
Why layoffs happened
The restructuring is driven by the need to rightsize GPI's cost structure due to the current macroeconomic environment, including softer-than-expected demand and overcapacity in bleached paperboard markets. Higher-than-anticipated costs to complete some projects at GPI recycled paperboard manufacturing facilities also contributed to the decision.
Company background
Graphic Packaging International is a provider of packaging solutions to food, beverage, foodservice, and other consumer products companies. Recently, GPI has undergone leadership shifts, including a new CEO and the departure of an executive vice president. The company also faced scrutiny regarding capital expenditures at its Waco, Texas, mill.
Industry impact
The restructuring at GPI reflects broader pressures in the packaging industry, including fluctuating demand and the need to optimize operations. GPI's actions to reduce costs and improve margins may influence similar decisions by other companies in the sector.
What's next
GPI will continue implementing its restructuring plan to achieve the targeted $60 million in cost savings by 2026. The company is focused on controlling costs and optimizing resource allocation to create lasting value amid unfavorable market conditions.
Source: packagingdive.com