May 30, 2007

Pulte cans another 1,900. Too bad we don't know the true REIC layoff number

1,900 more get the axe at Pulte today, but the real story on homebuilder layoffs will never be known, since the people who built all these unwanted homes were never "employees" - just contractors and illegals mainly.


But no matter how they're counted (or not counted) the jobs are gone.

And yes, that means a lot of people who aren't able to make their mortgage payment anymore, or buy new GM trucks, or take their family to PF Changs, or wire money back to Mexico (that's why they were booing).

The true REIC layoff number with housing and homebuilding having totally collapsed is likely in the millions. Don't forget ramen eating realtors don't show up in the government reports either.

We've lost another American industry folks (thank you Alan Greenspan). The country who no longer builds things now doesn't even build houses.

Homebuilder Pulte to Cut About 16 Percent of Work Force, About 1,900 Jobs in Restructuring

DETROIT (AP) -- Facing a grim housing market, Pulte Homes Inc. said Tuesday that it is cutting about 16 percent of its work force, or about 1,900 jobs, as part of a restructuring.

Pulte, 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.

19 comments:

burn baby burn said...

That means there are 1900 more unwanted/needed homes.

Peter said...

$200 Million by laying off 1900 employees? That's over $105K per year per employee. I didn't know construction paid that well.

Anonymous said...

Will the mexicans go home?

Anonymous said...

It's ok, I'm sure the 1,900 all have golden parachutes like David Learah.

Anonymous said...

no, the mexicans will stay, riot and demand a bigger piece of the carcass.

Anonymous said...

$200 Million by laying off 1900 employees? That's over $105K per year per employee. I didn't know construction paid that well.

You've obviously never employed anyone. That $105K is $60-70K in wages and the rest is payroll taxes, health insurance, liability insurance, workers comp, etc.

David said...

"$200 Million by laying off 1900 employees? That's over $105K per year per employee"

Plus that must include support stuff, such as buildings, equipment etc.

Anonymous said...

The true REIC layoff number with housing and homebuilding having totally collapsed is likely in the millions.

The "millions"? Thats at least 2. How do you go from 1,900 to >2M?

There are only 3M in construction, and that includes every HVAC and roofer. Try getting a plumber on the weekend when HP fires millions of them. Damn! those renters will be screwed.

Anonymous said...

I know some of the boy's over at Pulte Homes that will/are being layed off. And yes many do make close to six figures. They are college grad's and very motivated employees.

Many are ex-military.

Best training I know of for a supervisor managing a bunch of uneducated non-english speaking "trench soldiers".

TURDLY said...

All of the contractors at my place are english speaking with no secondary language and have started work within 2 days of the initial call. I've had A/C, electric, cabinets, plumbing, windows, pretty much a total rebuild of my garage. All of the guys were happy to get the work. All are licensed. The plumber came within 15 minutes of me calling, and it wasn't an emergency, I'm just adding an air line to the garage form the compressor in the shed. It's great. The no talent 'pool buildders' and such are being sorted out. I have the pick of the best, and the rest can get lost. I have a phrase for it that hasn't been used in a while. I call it 'NORMALCY'.

Anonymous said...

i still prefer the do it yourself method of everything, yet ive never gotten past govt regulations and its setting my anger into headbanging from its permiting rules

Anonymous said...

overbuilding like crazy, of course they had to cut it back. Can we say 'moratorium?'

Guy Daley said...

I've got another fantastic clue to the entire picture. I live in Wyoming and at the local grocery store on the bulletin board an excavating company from MICHIGAN has posted a notice.

"Due to the extreme economic recession in Michigan we are available with, blah, blah, blah"

I'm not sure what they are thinking because it will cost a fortune to ship there heavy equipment to Wyoming but things don't look too rosy in Michigan and I have a tendency to doubt there unemployment figures as well.

Anonymous said...

Keep in mind that Pulte has already laid off 25% of its workforce in 2005-2006. The current layoffs are primarily in the management and executive ranks. Division Presidents, Vice Presidents, Directors who were untouched in previous layoffs of the entry level construction managers, et al.

Part of the $200 Million savings comes from the closing of 11 divisions around the country.

I am one of the 1,900 (director-level) and I have nothing even closely resembling a golden parachute. Higher executives do, though. I have heard a year's pay, which is well into six figures, may be half a million in some cases.

Anonymous said...

I did see an article that was demonstrating that there must have been at least 200,000 illegal immigrants laid off in the construction industry.

http://www.nytimes.com/2007/04/17/business/17construct.html?ex=1180843200&en=3c4a45e4b7ae89f0&ei=5070

Anonymous said...

Whoever wrote this blog is a complete idiot. You have NO idea what youre talking about. I still work for Pulte, and the people are being laid off are actually employee's, several of them have been friends of mine.....not sub-contractors as errantly speculated. Perhaps before writing a tirad of a blog you should try arming yourself with some facts.

Anonymous said...

Here in AZ Pulte is hurting a lot and the guy posting is lying..suddenly everybody is gone..only the damn Mexicans left...Grrrrrr....

Anonymous said...

The people being laid off mainly are not construction workers. They are from the various division, area and corporate support staffs (information services, HR, finance, etc.). Pulte contracts most of it's construction work with the exception of the foreman type jobs. Pulte has been laying people off for over a year. It started with 100+ division employees in Michigan and a manufacturing facility. Then, it happened per division throughout 2006 and then there were corporate cuts in November.
- Former Pulte employee

Anonymous said...

Has anyone stopped to realize that Pulte Homes is not the only one laying off their workforce? Pulte Mortgage has its operations divisions in Denver, Co and Charlotte, NC. There have been consistent layoffs since last year consisting of a multitude of great, valuable workers. Not just 10 here or 30 there; I mean hundreds at one time or even over a thousand at one point! I was one of them -- yeah found out the week before Christmas. How tacky is that?.. but business is business! Seems that the company portrays a smokescreen to the public and to the employees working for them. Did you know that last Thursday another couple of hundred employees were laid off? How is it that the public doesn't know about this lay off? Not to mention their investors? Its not posted anywhere abt the most recent lay off from last week!! That seems a little deceiving and shady to me-- and after having worked there for a bit, that doesnt surprise me in the least bit! And i was not one of those employees who was angry about being laid off or even hostile-- the working conditions are horrible, the managers are so one-sided and "young" in their own experience, and the company's moto is: If you don't believe, you don't belong! I have never heard of anything like that in a corporate environment in my entire working career! They claim that they want their employees to put God first, family second and then work as a last priority. Not necessarily the case when its just like anywhere else trying to make a dollar off the little man-- a complete dysfunctional sweatshop.