Wednesday, May 30, 2007

Pulte Homes Cuts 16% of Workforce

From CNBC:

Facing a grim housing market, Pulte Homes said Tuesday that it is cutting about 16% of its work force, or about 1,900 jobs, as part of a restructuring.

Pulte Homes Inc. one of the nation's leading homebuilders, said the restructuring will save an estimated $200 million a year before taxes.

"The homebuilding environment remains difficult, and our current overhead levels are structured for a business that is larger than the market presently allows," Richard J. Dugas Jr., president and chief executive, said in a news release.

Notice the public statement from the President and CEO: "The homebuilding environment remains difficult". This is at the same time new home sales spiked 16% last month.

I don't see how the new home sales figures aren't getting revised down with news like this.