Thursday, October 05, 2006

Bakersfield Operations Involved in this RIF?

Standard Pacific employees notified homebuilder cutting jobs

Company memo sent out earlier this week.
The Orange County Register
Irvine-based homebuilder Standard Pacific Corp. has notified employees that it is eliminating some jobs and restructuring others following continued reports of lagging home sales across the nation.
Company officials couldn't be reached to confirm rumors of layoffs in at least three Southern California divisions and one in South Florida.
But a company memo to employees of the Orange County and Coachella Valley operations notified workers of an Oct. 3 "reduction in force."
The company's finances have been hit this year by a slowdown in new home orders and rising cancellations, fueled by a backlog of unsold homes in the existing-homes market, company officials said.
The company reported that net income was down 10 percent in the second quarter of the year and recently announced that orders had fallen 58 percent in July and August.
Company CEO Stephen Scarborough said also in a mid-September Web broadcast that the company's cancellation rate had grown to 50 percent as new-home buyers failed to sell their existing houses.


Anonymous said...

no US citizens are likely to lose their jobs ;)

Rob Dawg said...

50% cancellation rate doesn't show in the new home sales rate reported. So much for last month's 4.1% "increase."