Andersen Corp. is Latest Company to Announce Layoffs
Due to an economic downturn in the housing industry, evidenced by lower housing starts and a cooling demand for residential building products, some businesses are making cutbacks of various sorts, unfortunately including the area of personnel. While the indication is that the record-breaking market is simply returning to "normal," many companies now find themselves staffed to higher levels than product demand can support and most are attempting to adjust in other ways with mixed success.
As evidenced by recent cut-backs by door and window giant Andersen Corp., larger companies are equally susceptible to market fluctuations. The company is expected to layoff 440 employees in January 2007--400 at its Bayport, Minn., location and 40 at its Menomonie, Wis., assembly facility.
"As many of you know, after a long period of expansion, there has been a dramatic downturn in all segments of the housing market across the country," said Maureen McDonough, Andersen's director of corporate communications. "Because our business is so closely aligned with housing, that downturn, especially in the new construction segment, has created less volume opportunity for Andersen," she added.
Like many, its workforce was aligned with the demands of the housing market, but now the company finds itself over staffed as McDonough explained, "Because we don't expect a quick rebound, it's clear that we have more capacity than we need to meet demand. Unfortunately, we've reached the point where we need to reduce the size of our workforce to align with the forecast."
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