Wausau Homes Cuts One-Third of Its Work Force

Wausau Homes on Tuesday cut one-third of the work force at its Rothschild, WI headquarters in response to the deteriorating national economy, according to various news reports, including here, here and here.

The company announced 81 permanent job cuts across all departments, with 163 workers keeping their jobs, said Tom Schuette, company president. The cuts went into effect Tuesday and included both office and plant positions.

"It was a tough day," Schuette told the Wausau Daily Herald. "This one's hard because there's definitely people being let go that we didn't want to let go."

The workers affected were notified Tuesday and will be paid with benefits through Jan. 30, as required by law, Schuette said. In addition, Wausau Homes will pay the employees severance based upon how long they worked for the company.

"We had a companywide meeting to explain to everybody the situation, and then we kind of notified the people on a department by department basis," Schuette said.

This is the second layoff this year for Wausau Homes, which remains one of the oldest building systems manufactures in the United States. The company employs two building systems, notably modular and panelized building systems. In February, the company cut 44 jobs, citing the continued downturn in the U.S. housing market.

In addition, WH Transportation Co., a trucking company that delivers housing components for sister companies Wausau Homes and Sterling Building Systems, in June announced the reduction of 340 jobs across three states, in part as a response to higher fuel costs.

"The housing market, or the housing economy, has been hurting nationally for quite a while, and we seem to have stabilized, and then the recent financial crisis that has been hitting our country kind of has been a second blow," said Schuette, co-owner of WH Transportation.

Schuette said he would like Wausau Homes to be in a position to begin hiring again when the economy turns around, though he doesn't expect that to happen any time soon, and the company didn't have the ability to wait for a recovery without cutting jobs.

In a related story, a fire Tuesday night was reported in the parking lot of Wausau Homes. A truck was found in flames by emergency personnel and police and fire officials are investigating the blaze.