Verso To Layoff Nearly 40% Of Its Employees As It Slashes Production Capacity

Verso Corp. said it plans to make major production capacity by shutting down a pulp dryer and a paper machine at its Androscoggin mill in Jay, Maine and by indefinitely idling its mill in Wickliffe, Kentucky. The company said about 300 jobs at its Androscoggin mill will be permanently eliminated and about 310 employees will be laid off at its Wickliffe mill. That results in layoffs of 37% of the company's 1,630 employees, according to FactSet. The capacity cuts at Androscoggin will lead to $60 million to $65 million in asset impairment and depreciation charges and $10 million to $15 million in severance and cash costs, the company disclosed in a regulatory filing, while the Wickliffe mill idling will result in $8 million to $12 million in severance and other cast costs. The stock, which was inactive in premarket trade, has plunged 90% year to date, while the S&P 500 has gained 1%.