MEMPHIS, Tenn. (From news reports) -- One of Memphis's biggest employers is cutting staff.

International Paper confirmed Wednesday, Oct. 16, the company will cut about 650 total positions, including around 400 in Memphis. The company said it will provide severance packages, outplacement assistance and mental health resources to all affected employees.

"International Paper is undergoing a transformational journey to become a stronger, more profitable sustainable packaging solutions company. A critical step in this journey is to organize our teams and resources to create the most value for customers and shareholders," a spokesperson for the company said.

On Monday, IP announced a quarterly dividend for stock holders. It said it will hold a third-quarter earnings call Oct. 31.

International Paper was the 23rd largest employer in the Memphis area this year with about 2,500 employees.

"They're a major player in the business community here in Memphis, and they're also a huge sponsor of many, many events. And we always hate to hear when people lose their jobs," said Daniel Irwin of the Better Business Bureau. "So our thoughts just go out to all those employees and their families that are going to be impacted. And it's just it's pretty sad."

International Paper has its global headquarters on Poplar Avenue in East Memphis. The company said it has about 39,000 employees around the world. According to its website, the company's products and services include packaging, paper, recycling and pulp. It's products are used in everything from shipping boxes to hygiene products.

Memphis Mayor Paul Young commented on the layoffs, saying, "We deeply feel the impact of every job loss in our city, even when the ultimate intent is to strengthen the profitability and health of the company making the cuts. International Paper has stated that these layoffs were necessary to build a more robust organization; we believe their dedication to Memphis remains strong."

Memphis City Council Chairman J.B. Smiley, Jr. said he was devastated when he heard the announcement. He added that the city council will work to help the affected employees by finding them new jobs, especially since the holiday season is getting closer.

"You know it impacts a lot of folks because those folks have families they're supporting," Smiley said. "... So we're just trying to find ways to continue moving the city forward with companies like this, saying, 'Hey, it's not working here.' So we just got to figure out how to improve the city going forward."