Video: Quadrant Homes faces layoffs

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SEATTLE – The slowdown in home sales nationwide has now hit one of the largest home builders in Washington state in the form of layoffs.

Quadrant Homes is cutting up to six percent of its workforce.

In an e-mail to employees, Quadrant's CEO announced a formal reduction in force, brought about by home deal cancellations approaching 50 percent, forcing a production cutback from seven houses a day to five.

"Quadrant are by far the largest builder in the region," said land use economist Matthew Gardner. He adds Quadrant is trying to respond smartly to the housing downturn.

For years, Quadrant rode the wave of the housing boom, establishing a high community profile.

With aggressive marketing, Quadrant pitched homes at $400,000 or less. But today's distressed market has caught up with Quadrant  - despite its size and market share.

"They're now scaling back. I think that's fiscally prudent on their part and look at the nuances of the market place and say we need to slow down to let the market catch up," said Gardner.

In the e-mail, Quadrant's CEO tried to sound upbeat. "Families still need new homes and are looking to us to deliver," he wrote. "Today it just became a little harder."

The Quadrant layoffs come as the Commerce Department reports new home construction in April posted the biggest increase in two years, rebounding by more than eight percent since March.