Homebuilder Lennar lays off 35% of staff
U.S. homebuilding giant Lennar Corp. said Tuesday it would cut its workforce by 35 percent, reflecting a steep downturn in the housing market.
President and Chief Executive Officer Stuart Miller said the No. 2 U.S. homebuilder expected "continued reductions" next quarter.
A company representative did not return calls seeking the number of Lennar employees let go.
Lennar's latest annual report said the Miami company employed 12,605 people as of Dec. 31, 2006.
"It is already well documented that the housing market has continued to deteriorate throughout our third quarter," Miller said.
"Heavy discounting by builders, and now the existing home market as well, has continued to drive pricing downward," he said. "Consumer confidence in housing has remained low, while the mortgage market has continued to redefine itself, creating higher cancellation rates."
Lennar's response to the crisis is "to adjust pricing to meet current market conditions in order to keep inventories low and to keep our balance sheet positioned for the future," he said.
Lennar reported a net loss of $513.9 million, or $3.25 a share, compared with year-earlier net income of $206.7 million, or $1.30 a share.
It was the biggest quarterly loss in Lennar's 53-year history and exceeded analysts' most pessimistic estimates. // Copyright 2007 by United Press International
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