St Joe slashing more jobs here in the Great NW

[Smiling JOe]

Peter Rummell was in town today, talking to the support staff for St Joe. Word has it that in the next 60 days, he is slashing 50 people in the region, including Gulf County. Most of the positions being cut are reported to be associated with the building and Homeowners Assoc. Mgt. :shock: Look for a slight jump in the stock price soon. Gone will be the people in charge of issuing fines to builders for violations, lot owners for not building in time, architectural review people, etc. This could mean some serious stuff. Anyone want to buy the rest of St Joe's share in these NW Florida developments? I hear that it is for sale.

All of this info is grapevine talk, fresh from some insiders. Look for news articles to soon follow. I hear that a newspaper in somewher either in Panama City or over towards Apalachicola had an article this morning regarding at least part of this info.

 

[flyforfun]

Peter Rummell was in town today, talking to the support staff for St Joe. Word has it that in the next 60 days, he is slashing 50 people in the region, including Gulf County. Most of the positions being cut are reported to be associated with the building and Homeowners Assoc. Mgt. :shock: Look for a slight jump in the stock price soon. Gone will be the people in charge of issuing fines to builders for violations, lot owners for not building in time, architectural review people, etc. This could mean some serious stuff. Anyone want to buy the rest of St Joe's share in these NW Florida developments? I hear that it is for sale.

All of this info is grapevine talk, fresh from some insiders. Look for news articles to soon follow. I hear that a newspaper in somewher either in Panama City or over towards Apalachicola had an article this morning regarding at least part of this info.

Joe, actually what we have been informed is personal who are directly associated with property management are affected. This void will be handled by other management firms that the HOA will have to contract with. Basically what they are doing is shifting more cost of managment to home owners. As a homeowner in WS, we fell pretty confident that we will do a much more efficent job in this area than St. Joe, and I am certain other communities feel the same. What I have been told is that St. Joe still will control through the design review process property build outs and fines.

 

[Smiling JOe]

Joe, actually what we have been informed is personal who are directly associated with property management are affected. This void will be handled by other management firms that the HOA will have to contract with. Basically what they are doing is shifting more cost of managment to home owners. As a homeowner in WS, we fell pretty confident that we will do a much more efficent job in this area than St. Joe, and I am certain other communities feel the same. What I have been told is that St. Joe still will control through the design review process property build outs and fines.

I here that the six guys in charge of this will be reduced to one person's job requirements. That is only talk, but we will see soon.

Here is St Joe's required 8-K, released yesterday link:


Form 8-K for ST JOE CO 16-Jan-2007
Costs Associated with Exit or Disposal Activities, Financial Statements and Exhibits

Item 2.05 Costs Associated with Exit or Disposal Activities. In August 2006, the Company announced a reorganization of its operational structure and a workforce reduction designed to reduce operating expenses. See the Company's Current Report on Form 8-K filed on August 16, 2006. As the Company implemented its new organizational structure and continued to formulate its long-term plans, management realized that there were additional opportunities for increasing operating efficiencies in the Company's workforce. Accordingly, management decided to make an additional workforce reduction, which was communicated to affected employees on January 15 and 16, 2007. Approximately 5% of the Company's employees were terminated in connection with this plan.
The Company believes that this action will help to further reduce the Company's overhead expenses over the long term. In the near term, the Company expects to take a charge to earnings of approximately $2.5 million as a result of the terminations. Of the total charge, approximately $2.4 million is expected to be incurred in the first quarter of 2007. The charges incurred will be primarily one-time cash termination benefits to employees.
Additional information on the organizational changes described herein is set forth in the Company's press release dated January 16, 2007, a copy of which is filed as Exhibit 99.1 hereto and is incorporated by reference herein.




Item 9.01 Financial Statements and Exhibits. (c) Exhibits
99.1 Press Release dated January 16, 2007

 

[Miss Kitty]

Dear Homeowner,

On January 16, 2007, the St. Joe Company announced a decision to transition away from the homeowner association property management business. Over the course of the next few months, JOE will be reviewing alternatives for how we make sure this important work continues uninterrupted. Meanwhile, our team will remain on the job to ensure the continued success of our communities. One of the options being considered is third-party management companies who can take over all of the property management functions. Our goal is to complete a transition to a new management structure by May 15, 2007.
These changes do not affect JOE?s development activity, our commitments to owners or the anticipated turnover date of any community. These changes do not have any impact on JOE?s resort operations, including the resort rental management program. These resort activities will continue to be managed and operated by St. Joe.
As we start this process, it is important that we acknowledge the hard work, outstanding contributions and diligent efforts of all of those who over the years have played important roles in JOE?s homeowner association property management operations. We are committed to working with them individually and assisting them as they make their personal transitions.

 

[John R]

We are committed to working with them individually and assisting them as they make their personal transitions.

um, ok. people in homebuilding were given notice also. end of feb.

 

[Joe Complete]

St. Joe laid off 50 people here in Tallahassee yesterday. I just spoke with my neighbor 2 doors down and sadly he was one of them.

http://www.tallahassee.com/apps/pbcs.dll/article?AID=2007701170313

 

[SHELLY]

This is what's known in corporate America as "Downsizing to Profitability."

On the plus side, Florida has tons and tons of jobs available for the those who will be given the boot.

On the "not so plus side" the homeowners will soon find out how much JOE subsidized the operation of their "places."


Additionally, JOE is unloading it's office building holdings. JOE shareholders' conference call scheduled to air on Feb 6th--sounds like they're leaking out info leading up to showtime.

 

[hi n dry]

This is what's known in corporate America as "Downsizing to Profitability."

......
On the "not so plus side" the homeowners will soon find out how much JOE subsidized the operation of their "places."

....

Does this mean Watersound/Watercolor property prices might get even cheaper as association fees shoot skyward ?

How much lower can a formerly $500k lot go? Do I hear $150k?

 

[SHELLY]

Does this mean Watersound/Watercolor property prices might get even cheaper as association fees shoot skyward ?

It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting.


.

 

[Miss Kitty]

It's hard to say what's going to happen as JOE starts turning over the reins to the townfolk--but I can guarantee, after that happens, the homeowners' association meetings are reeealllly going to get interesting.


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