Pulte Homes Cuts Another 16% of Its Workforce

| About: PulteGroup, Inc. (PHM)

Pulte Homes says it will cut 16% of its workforce in response to "the challenging operating environment that exists in the U.S. home-building industry." Pulte will take a $40-50 million charge as part of the move, most of it in Q2. It said the changes will save $200 million annually, with $90-100 million in savings in 2007. Pulte had 12,400 employees in 2006 and 13,400 in 2005; post reorganization, the company said it will employ just over 10,000 people. "The homebuilding environment remains difficult and our current overhead levels are structured for a business that is Pulte Homes Chart 30 5 07larger than the market presently allows," CEO Richard J. Dugas said. The company has already reduced its workforce by 25% since 2006.

Sources: Press release, Wall Street Journal, AP
Commentary: Calculated RiskHomebuilders Sinking Into the Subprime MessPulte Homes Falls to #4 Homebuilder on Weak Earnings
Stocks/ETFs to watch: Pulte Homes Inc. (NYSE:PHM). Competitors: Lennar Corp. (NYSE:LEN), Toll Brothers Inc. (NYSE:TOL), Centex Corp. (CTX), D.R. Horton Inc. (NYSE:DHI), Hovnanian Enterprises Inc. (NYSE:HOV), Beazer Homes USA Inc. (NYSE:BZH). ETFs: streetTRACKS SPDR Homebuilders ETF (NYSEARCA:XHB), iShares Dow Jones U.S. Home Construction (NYSEARCA:ITB)

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.