There has been a simmering controversy this week in the Atlanta corporate world with Pulte Homes rumored to be in the process of making major layoffs. The major newspapers have not yet covered the story but layoff tracking site TheLayoff.com has multiple reports of significant layoffs and the closing of a satellite office.
Some people are saying the layoffs could be as high as 200-300 people and stretch across the country from Atlanta to Sacramento to Arizona. The mainstream media should pickup the story soon and get response from executives at the company. Laid off employees are being told it was intended to cut overhead but normally cuts in overhead are focused on company leadership and not on the people doing the day to day work at the company.
It remains to be seen how big and problematic the layoffs become, but more importantly what impact will it have on the political environment.
The Atlanta mayor will likely take some criticism for the impact on jobs in his community. Kasim Reed is the current mayor and is ineligible to run for re-election and supposedly has his sights set on higher office. He is no stranger to controversy after using a lobbyist and controversial Clinton SuperPAC to write a CNN column attacking Hillary Clinton’s opponent.
There is also a Republican angle to this story. Some will argue that pressure is coming down from Republican honcho and Hedge Funder Paul Singer whose company Elliot Management recently purchased Pulte stock and drove up the value of shares.