Paperboard Mill Fires About 20% of Staff

Clearwater Paper cites industry downturn, plans to run Arkansas plant at half capacity

Apr. 11, 2026 at 6:42am

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A high-end, photorealistic studio still-life photograph featuring a stack of premium paperboard samples in muted earth tones, resting on a clean, monochromatic seamless background with sharp, dramatic lighting and deep shadows.Paperboard samples sit in a carefully composed studio still life, symbolizing the industry's need to adapt to supply chain challenges and economic pressures.Russellville Today

Clearwater Paper Corp. has fired about 20% of the salaried and hourly employees at its Cypress Bend, Arkansas paperboard facility, citing a supply-driven downturn in the industry that is pressing margins and cash flows. The company plans to run the Arkansas plant at about half its production capacity, resulting in $8 million to $12 million of annualized cost savings.

Why it matters

The layoffs at Clearwater Paper's Arkansas mill reflect broader challenges facing the paperboard industry, as companies grapple with supply chain issues and economic pressures. The decision to significantly reduce production capacity at the Cypress Bend facility underscores the need for manufacturers to adapt to changing market conditions.

The details

Clearwater Paper, which makes paperboard packaging products, had 320 employees at the Cypress Bend facility. About 50 workers have now left the company, including some who retired, and around 20 open positions will not be filled, leaving the mill with approximately 250 employees. The company says it will provide severance packages, health care subsidies, and outplacement services to the affected workers, and work with their union through effects bargaining.

  • Clearwater Paper announced the layoffs on Friday, April 11, 2026.

The players

Clearwater Paper Corp.

A Spokane, Washington-based company that manufactures paperboard packaging products.

Arsen Kitch

The president and chief executive officer of Clearwater Paper.

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What they’re saying

“We are faced with a supply-driven downturn in our industry that is pressing margins and cash flows.”

— Arsen Kitch, President and CEO, Clearwater Paper

What’s next

Clearwater Paper says it intends to return the Cypress Bend mill to full production in the future when industry conditions improve.

The takeaway

The layoffs at Clearwater Paper's Arkansas facility underscore the challenges facing the paperboard industry, as companies navigate supply chain issues and economic pressures. The decision to significantly reduce production capacity highlights the need for manufacturers to adapt their operations to changing market dynamics.