Potlatch Studying Ways To Cut Costs

Potlatch Corp. executives are examining ways to cut costs and save money in the face of a significant earnings decline.

“It is serious and we are concerned,” spokesman Michael Sullivan said.

All employees have received a memorandum on the effort, although no specifics were available. Sullivan predicted it will be months before final decisions are made.

“Based on my knowledge to date, no closures are being discussed,” he said.

The company attributed the earnings shortfall primarily to the performance of its Minnesota pulp and paper division. Those difficulties have been resolved, but Sullivan said the problem goes beyond just one or two areas.

Potlatch is the second largest employer in north-central Idaho and southeastern Washington. The company also has other Idaho sites and operations in Minnesota, Oregon, Arkansas, and Nevada.