St. Joe’s Cuts Workforce and Dividend

St. Joe Company, Florida's largest private landowner, announced Monday it will cut 75% of its workforce, sell 100,000 acres of land, and stop paying its dividend. The company said it will partner with "leisure, hospitality and lifestyle brands" to develop and operate the land it owns, to make up for the laying off or transferring at least 760 employees. Though these types of announcements are barely shocking amid the housing market's worst slump in 16 years, St. Joe's is considered a well-run, well-financed firm, and its difficulties illustrate the severe challenges in Florida real estate. "If Joe is having to do this, the pain in the residential companies is likely worse in my mind," said Christopher Haley, an analyst at Wachovia Securities. The company said as a result of the restructuring, it will save about $10 million in 2008, $18 million in 2009 and $20 million in later years. Shares of St. Joe finished down 0.32%, to $34.04 in Monday's session.

Sources: Bloomberg, WSJ
Commentary: St. Joe To Cease Building Homes in Florida As National Housing Market Goes From Bad to Worse • St. Joe's Defense: Weak At Best
Stocks/ETFs to watch: JOE. Competitors: AVTR. LEN. ETFs: XHB, ITB

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