Clearwater Paper to Cut Production, Jobs at Arkansas Facility

The company will scale back operations at its Cypress Bend mill amid a downturn in the paperboard market.

Apr. 10, 2026 at 3:20am

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A high-end, photorealistic studio still-life photograph featuring a stack of premium, matte-finished paperboard sheets in a neutral color palette, resting on a clean, monochromatic seamless background with sharp, dramatic lighting and deep shadows.Clearwater Paper's restructuring of its Arkansas facility reflects broader industry challenges in the paperboard market.Spokane Today

Clearwater Paper Corporation announced it will reduce production and cut approximately 20% of salaried and hourly positions at its Cypress Bend facility in Arkansas as part of a restructuring effort. The mill will operate at about half of its production capacity in response to a supply-driven downturn in the solid bleached sulfate (SBS) paperboard market.

Why it matters

The changes are expected to generate between $8 million and $12 million in annual cost savings for Clearwater Paper, a major producer of paperboard packaging products used in consumer goods and food service applications across North America. The decision reflects broader industry pressures on margins and cash flow.

The details

Clearwater Paper said the facility remains a long-term asset, with plans to return to full production when market conditions improve or through potential future investments. Impacted employees will be offered severance packages, healthcare subsidies, and outplacement services, and the company will work with union representatives through the effects bargaining process.

  • Clearwater Paper announced the changes on April 9, 2026.

The players

Clearwater Paper Corporation

A Spokane, Washington-based company that produces paperboard packaging products used in consumer goods and food service applications across North America.

Cypress Bend facility

Clearwater Paper's mill located in Arkansas that will see reduced production and job cuts.

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The takeaway

This restructuring reflects the challenges facing the paperboard industry, as companies like Clearwater Paper navigate supply-driven market downturns and work to improve operating efficiency and profitability.