International Paper Will Cut 3,000 Jobs

International Paper Co., the largest paper and lumber maker, will eliminate 3,000 jobs, or 10% of its salaried work force, to reduce expenses because of falling demand and paper prices.

About a quarter of the jobs will be eliminated in Cincinnati and Memphis, Tenn., offices, and the remainder will be cut throughout North America, a spokesman said. International Paper plans to take an unspecified second-quarter charge to cover the costs.

The Stamford, Conn.-based company’s first-quarter earnings tumbled 93%, and analysts expect profit to fall again this quarter. Paper prices and demand have slumped as the U.S. economy slows.

The company said some positions have become redundant because of asset sales and last year’s acquisition of rival Champion International Inc. None of the cuts involve manufacturing or hourly employees.

Shares of International Paper closed off 60 cents at $35.40 on the New York Stock Exchange before the news was announced.