Potlatch Cuts 105 Jobs

Potlatch Corp. has eliminated 105 salaried jobs in the Northwest and will leave another 25 vacant positions unfilled.

The majority of the job cuts occurred in Lewiston, where the company has a sawmill, paper and tissue operation.

Potlatch disclosed the magnitude of the cost-cutting measure this week, after earlier meetings with its 1,700 salaried employees.

All employees will be paid through July 31 and receive severance packages, said spokesman Mike Sullivan.

Potlatch has hired a company to provide relocation and counseling services, he said. It will open an office Monday in Lewiston.

Potlatch also eliminated two jobs and one vacant position in St. Maries; one job at the Post Falls particleboard plant; and three jobs at its sales and corporate offices in Spokane.

In addition to the jobs eliminated, some workers were offered transfers to lower-paying jobs, Sullivan said.

Potlatch employs about 3,000 people in Idaho. It also cut 160 full- and part-time salaried positions in Minnesota and Arkansas.

Company officials have indicated that a review of its hourly work force could come next. Potlatch is trying to boost profits and shareholder value after a decade of stagnant stock prices.

The job cuts in Lewiston could have a significant impact on the community there, said Douglas Tweedy, regional labor market analyst for the state of Idaho.

Every full-time salaried position eliminated affects three other workers in reduced hours or layoffs, he said.