Smurfit Westrock to Cut 72 Jobs in St. Paul as Layoffs Hit Local Economy

Smurfit Westrock to Cut 72 Jobs in St. Paul as Layoffs Hit Local Economy

The recent announcement from Smurfit Westrock has sent ripples through the St. Paul community as the company prepares to lay off 72 workers by September 1st at its facility on Wabasha Avenue. As reported by Minnesota’s New Country, the Minnesota Department of Employment and Economic Development (DEED) has issued the necessary layoff notice. Initially, these layoffs were expected in June, but they were postponed due to ongoing business needs.

Smurfit Westrock, a global giant in sustainable paper and packaging solutions resulting from the merger of Smurfit Kappa and WestRock, has its operations spanning 40 countries. While the St. Paul location specializes in producing containerboard liners and flutings for corrugated board, the nearby St. Cloud facility remains unaffected, continuing its production of corrugated packaging for various industries.

Broader Impact of Closures

As part of a broader restructuring strategy, Smurfit Westrock has announced the closure of several facilities, including a coated recycled board mill in St. Paul and a containerboard mill in Forney, Texas, leading to an estimated 650 layoffs across the U.S. and Germany. According to Packaging Dive, this decision was made ahead of their Q1 2025 earnings report and reflects an overall reduction in containerboard and coated recycled board production capacity by more than 500,000 tons.

The Forney mill closure alone will impact around 200 employees, with layoffs scheduled for June 30th. This move comes as companies worldwide reassess their operations in light of economic uncertainties. The company has promised severance packages and support for those affected, including career transition assistance and relocation opportunities.

The Layoff Landscape

Smurfit Westrock is not alone in this wave of layoffs that has swept through various sectors, particularly with companies facing difficult decisions. In 2023, roughly 300,000 employees were laid off in the U.S., with the tech sector bearing the brunt of these cuts, as noted by Market.biz. In 2024, job cuts surged to 761,358, marking the highest level of layoffs in 15 years— an alarming trend that highlights the ongoing challenges businesses face in today’s economy.

Across the board, the reasons for layoffs vary from corporate restructuring to automation and shifting market demands. As companies like Smurfit Westrock aim to streamline their operations, the effects are felt by employees in many sectors, leading to rising fears and anxieties about job security.

In this turbulent climate, the commitment to provide severance and support from companies is crucial. The hope is that with careful planning and assistance, those affected by the current layoffs can find new opportunities and adapt to the changing job landscape.

Amidst all these challenges, it’s essential to keep the conversations flowing and maintain community ties, ensuring that despite the layoffs, the spirit of resilience remains alive in St. Paul and beyond.