| Second Round of Cuts at Pulte |
| Written by Jonathan Smoke | |
| 05.31.2007 | |
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Discuss this article on the forums. (0 posts) Late Tuesday, Pulte announced that it was planning on a an additional cut of 16% of its workforce. “The restructuring plan will result in a pretax charge of $40 million to $50 million, which will mostly be recorded in the second quarter.
‘The homebuilding environment remains difficult and our current overhead levels are structured for a business that is larger than the market presently allows,’ Pulte CEO Richard J. Dugas, Jr. said in a statement. The latest cuts come on top of a 25% workforce reduction over the past year and a half, Pulte said.” According to the Hoover’s profile information, Pulte had 13,400 employees at the end of 2005. That would mean 3,350 jobs were cut in 2006, and at least another 1600 jobs are being eliminated in this round.  If a large number of these are overhead jobs in Pulte’s headquarters in Michigan, this will be another blow to the troubled Michigan economy.However, we expect that many of these jobs will be reductions in force in many of the local divisions who are now operating at a lower capacity than in prior years. Unfortunately we also know from experience that it’s often the professionals like us who are let go in these tougher times. It seems that making the best decisions is a luxury that many feel cannot be afforded in difficult times. Ironic, don’t you think? 
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