by Calculated Risk on 10/08/2006 12:25:00 AM

From the Star Ledger: Housing slide prompts Hovnanian to cut jobs

In an internal memo to employees dated Oct. 3, Chief Executive Ara K. Hovnanian said an unspecified number of staff reductions were necessary in order "to remain healthy," as the nation's eighth-largest U.S. home builder grapples with the broad downturn plaguing its industry.

Paper-money has posted the Hovnanian internal memo:

MEMORANDUM TO: All Associates
FROM: Ara K. Hovnanian
DATE: October 3, 2006

A few months ago I wrote to you about the changing market conditions in our industry and our concerns about how long the downturn in homebuilding may last. Since that time, the market has slowed further still, representing one of the steepest declines in new home sales in our memory. Most of our markets have been affected, some severely. At this point, we are preparing for a long period of slower sales, at least through 2007 and perhaps beyond.
...
The most difficult adjustment we have had to make to the changing market is in the area of staffing. In many locations, including corporate headquarters, we have been forced to face the fact that we no longer have enough work for all of our Associates. ...
emphasis added