A struggling economy forced the Lawrence Paper Co. to lay off 40 people Wednesday, the first layoff for the cardboard box manufacturer in nearly three decades.

Justin Hill, secretary/treasurer for the company, said the layoffs were effective immediately.

He said the affected employees included almost an “even mix” of office workers and production workers. Hill said the downturn in the economy was responsible for the job losses.

“It started dropping off about two-and-a-half years ago, but the drop off really accelerated six months ago,” Hill said. “Now business is off considerably.”

The layoffs represent 10 percent of the company’s work force of 400 people. The company, located at 2801 Lakeview Road, is one of the few who still have union representation. Hill said the layoffs included both union and nonunion employees, but he declined to say how many union employees were let go.

Bill Hadl, president of the Bakery, Confectionery, Tobacco & Grain Millers — Local 73, said the union had 20 to 25 employees at the plant. He said he also didn’t immediately know how many union employees were part of the layoff.

“I figured they (the layoffs) were coming,” Hadl said. “I’m kind of surprised they haven’t happened earlier. I don’t think it is going to get any better. It is kind of hard to tell until after this war. The last few weeks people have been struggling to get their hours in.”

Rudy Neugebauer II, a 26-year employee at the plant, said he was surprised by the layoffs because the company had never made any significant job cuts during his tenure.

Hill said the last time the company announced layoffs was in the early 1970s.

Workers leave the production facility of Lawrence Paper Co., 2801 Lakeview Road. The company cut 40 jobs at the plant on Wednesday, citing a slumping economy for the layoffs.

“I really feel for all of them,” Neugebauer said. “There will be a lot of house payments missed. There will be a lot of trouble for a lot of people.”

Neugebauer said a slowdown in buying habits of consumers was likely the reason the company, which has produced boxes for everything from beer to light bulbs, was suffering.

“I would say that the manufacturers just aren’t selling their product, and when they don’t sell their product, they don’t need our product to box it up in,” Neugebauer said.

Hill declined to comment on whether workers were given a severance package.

Company president Alan Hill said he was optimistic that future layoffs at the company would not be necessary.

“The company is financially sound, and we are making this move to preserve that status,” Alan Hill said.

— Kansas University journalism student Doyle Murphy contributed to this story.