International Paper to cut about 900 jobs as a results of production shutdowns

Shares of International Paper Co.
IP,
+0.41%
slipped 0.1% in premarket trading Wednesday, after the paper producer said production shutdowns to optimize manufacturing will result in about 900 employees losing their jobs and pre-tax charges of about $664 million in the fourth quarter. The paper producer said it will permanently close its containerboard mill in Orange, Texas and permanently cease production on two pulp machines, one in Riegelwood, N.C. and one in Pensacola, Fla. The closure in Orange will cut containerboard capacity by about 800,000 tons and ceased production in Riegelwood and Pensacola will reduce pulp capacity by about 500,000 tons. IP’s stock has rallied 13.2% over the past three months through Tuesday while the S&P 500
SPX,
-0.65%
has lost 4%.