Granite Construction Inc., Watsonville, Calif., is reducing its workforce by 227 employees, or approximately 13% of its salaried workforce. The layoffs, announced on Oct. 25, are expected to cut the company’s cost structure by about $20 million to $24 million annually. Granite will record a pre-tax charge in the fourth quarter of approximately $10 million to $12 million associated with severance and benefits-related costs. Granite also is working to identify “assets and investments that are not meeting profit and cash-flow expectations and are not projected to provide acceptable returns in the foreseeable future.” The company intends to close or divest
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.