Industry News

Builder Beazer reports major layoffs

Investment group calls for removal of CEO

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Embattled builder Beazer Homes USA Inc., which is facing a series of investigations and lawsuits over business practices and plans to restate earnings dating back to the 2004 fiscal year, announced that it cut a quarter of its workforce, or 650 positions, in October. Also, an investment group affiliated with a coalition of unions is calling for the removal of Beazer Homes CEO Ian McCarthy. CtW Investment Group charges in a scathing letter to the chairman of Beazer's nominating and corporate governance committee, "Taken together, the combination of improper practices, compliance failures and poor corporate governance ... constitute a stinging indictment of Beazer's leadership in general and of Mr. McCarthy in particular. By swiftly replacing Mr. McCarthy with a qualified CEO and naming an independent director to assume Mr. Beazer's role as chairman, the board can begin to restore the credibility Beazer desperately needs." The letter also states, "Rather than create sustainable,...