Potlatch Begins Process To Cut Work Force

Potlatch Corp. began meeting individually with 1,700 salaried employees this week, letting workers know whether they will keep their jobs.

Numbers of layoffs won’t be announced until next week at the earliest, when all employees have been notified, said spokesman Frank Carroll.

Plans for the downsizing were announced earlier this year. The cutback is intended to make the wood products company more competitive and give investors a better return.

“Our financial performance has been below most of our competitors in recent years,” Carroll said. “We’re taking significant steps to provide reasonable returns to shareholders.”

Payroll for salaried workers is about $150 million annually. Each department scrutinized its salaried work force - “from the most senior vice president to the newest folks in the office,” Carroll said.

The Spokane-based company also employs about 5,000 hourly workers at its operations in Idaho, the Midwest and Arkansas. Hourly workers aren’t affected.

Workers who lose their jobs will be paid through July 31. They will be eligible for a severance package, Carroll said, adding some may be rehired for other jobs.