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Pulte to Slash Jobs

The homebuilder will cut 16% of its workforce.

Pulte Homes

(PHM) - Get PulteGroup, Inc. Report

said it will cut 16% of its workforce in response to the continued slowdown in the U.S. homebuilding industry.

The restructuring plan will result in a pretax charge of $40 million to $50 million, which will mostly be recorded in the second quarter.

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

The latest cuts come on top of a 25% workforce reduction over the past year and a half, Pulte said.

The jobs cuts and other planned cost reductions are expected to save Pulte $200 million a year on a pretax basis, excluding the initial charges.