Based on an article in the Atlanta Journal Constitution this morning, February 1, 2008, The Home Depot announces a layoff of 10 percent of its Atlanta headquarters.
Roughly 500 of the 5,000 employees here were told by their managers that they would be let go as part of the company's response to a chill in homebuilding and a slowing of the overall economy.
"We have been pretty clear that we are operating in a tough business environment," said corporate spokesman Ron DeFeo."We see that continuing in 2008."
Comments on the latter:
During the housing boom, Home Depot had explosive growth and even added a Home Depot Landscape Division which closed its' doors in Novemeber of last year.
In my opinion the latter is just another result of continued massive building during a time when many ARMs of all types were beginning to come due and reaching levels not maintainable by many home owners. Why didn't the building industry see this coming...trust me, they did! They chose to turn their heads and look the other way hoping to God and pocketbook that they would not get caught in the midst of the down turn of the housing market.
Guess what?...ARMs did come due, even those ugly Libor and Option Arms! UGHHH!!!
The resultant rate of foreclosures started showing up on the books while builders were still in the MIDDLE of finishing up communities, while new development plans continued to be drawn up and land deals made with the anticipation of profit before the boom would end. Hey, all things housing related need to self correct. the sooner we can get back to a market of moderation all relative parites can make reasonable profitsand mental and monetary stability can be part of the pysche again.
Let this be a case for "sometimes what appears on the surface to be a bad thing, is in reality a good thing when all is said and done.