Clearwater Paper Corporation has eliminated 20% of jobs at its Arkansas production facility, according to company sources and local officials. The cuts affect approximately 150 positions at the McGehee plant, which specializes in consumer tissue products.
The Spokane-based company cited ‘ongoing operational optimization’ as the primary reason for the restructuring. Analysts note this follows a 6% decline in Q3 earnings reported last month. ‘This is part of a broader trend in paper manufacturing where companies are streamlining costs amid softening demand,’ said industry analyst Mark Henderson of Forest Products Weekly.
Arkansas Department of Commerce records show the facility employed 745 workers as of September 2026. Local officials expressed concern about the economic impact but noted affected employees would receive severance packages. ‘We’re working with regional workforce development agencies to provide retraining opportunities,’ said McGehee Mayor William Cole.
The move comes as paper manufacturers face dual pressures of rising pulp costs and reduced commercial demand. Clearwater Paper shares (NYSE: CLW) were down 1.4% in afternoon trading following the announcement.