Weyerhaeuser Co. said it would cut about 1,500 employees, or 6.3% of its global work force, as the company swung to a second-quarter loss amid slumping new-home demand and rising input costs.
The forest-products company reported a net loss of $96 million, or 45 cents a share, compared with year-earlier net income of $32 million, or 15 cents a share. Excluding real-estate impairments, restructuring charges and other items, Weyerhaeuser per-share earnings slumped to three cents from 48 cents.
Revenue fell 17% to $3.61 billion, with a 27% drop from continuing operations to $2.17 billion.
International Paper Co. closed its $6 billion purchase on Monday of Weyerhaeuser's containerboard, packaging and recycling business. Weyerhaeuser has said it will use a substantial portion of the proceeds to pay down debt.
The company has shed several units as it seeks to focus on its logging and residential units. Most of the latest job-cutting will take place in Weyerhaeuser's Federal Way, Wash., headquarters, which currently employs about 2,500 people. The cuts will occur by the end of 2009.
The company's wood-products business reported a wider loss as the weakening housing market continues to reduce demand. Weyerhaeuser is one of the nation's largest providers of lumber products to the housing market.
The real-estate business, which includes the company's home-building operations, swung to a loss of $337 million. The cellulose-fibers unit posted a 13% decline in pretax profit on higher costs, while timberland earnings fell 24%.
--The Associated Press contributed to this article.
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