US Home builder Pulte Homes says to cut more jobs

SAN FRANCISCO (Reuters) - Citing a difficult market for home builders, Pulte Homes Inc. (PHM.N) said on Tuesday it would cut 16 percent of its work force.

Pulte Homes said it expects a pretax charge in the current, second quarter of $40 million to $50 million related to the job cuts, mainly from severance costs and facility expenses from consolidation and administrative activities. Most of the job cuts will occur this quarter, it said.

The second-largest U.S. home builder said in a statement that it aims to reduce costs and improve operating efficiencies amid a "challenging operating environment that continues to exist in the U.S. homebuilding industry."

Responding to the broad housing slowdown, Bloomfield Hills, Michigan-based Pulte Homes cut approximately a quarter of its work force in 2006 and last year.

"The homebuilding environment remains difficult and our current overhead levels are structured for a business that is larger than the market presently allows," Richard Dugas, Jr., president and chief executive of Pulte Homes, said in the statement.

With its latest restructuring plan and other planned spending cuts, Pulte Homes said it expects reductions in 2007 pretax spending of $90 million to $110 million, excluding restructuring charges.

"On an annualized basis, these collective actions are expected to save the company approximately $200 million on a pretax basis," Pulte Homes said in its statement.