According to an article in the Star-Telegram, Beazer Homes USA Inc. has experienced sharp revenue declines due to plunging home closings and new orders. To avoid facing bankruptcy amidst rising foreclosures and a shrinking credit market, Beazer Homes recently implemented 300 job losses.
The article quoted a Beazer executive:
“While such decisions are not taken lightly it has been necessary to continue to align our cost structure with the reality of lower home closing volumes as the housing slowdown has persisted…Any stimulus to the economy I think will generate some activity…so we really do believe that is a very positive impact if it comes through.”
And so, it continues…more job losses for those in the housing sector. These job losses are only getting started as the economy worsens and companies dig in for a protracted recession/depression. But the stimulus package won’t be able to stop the job losses because these companies still don’t have customers or the number of customers they had in the past (during the boom). The best advice for those working in the housing sector (residential or commercial) is to keep your eye open for more job losses and be prepared.