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Lauth lays off another batch of workers

March 14, 2008
Indianapolis developer Lauth Group Inc. is letting go of dozens of employees in its second round of layoffs this year.

A spokesman for the Lauth, which had frantically added employees in recent years to manage a booming development pipeline, said the economy is to blame for the reverse in course.

"As a direct result of the continued downturn of the national economy, the real estate industry is experiencing reduced project starts, and, therefore, we have to realign our staffing levels accordingly," said spokesman Marc Lotter.

Lotter would not say how many people are being pushed out the door. In January, Lauth laid off 80 employees, including 54 at its Indianapolis headquarters.

Most of the positions eliminated in January were in construction and engineering services, areas in which Lauth now plans to increase its reliance on third parties. Layoffs this time around are being done on a "department-by-department basis," Lotter said.

Lauth had 450 employees prior to the January layoffs, which the company described as a "realignment" that would help the nation's 13th-largest developer continue to grow. About 90 percent of Lauth's business is outside Indiana.

Lotter said the company is broadening the scope of its health care division and focusing on the most resilient markets, and still expects to grow its project volume.

The company built $592 million in projects in 2006, up from $143 million in 2004. During the same period, the company grew from 168 employees to 405. Its revenue doubled from 2004 to 2005, then doubled it again from 2005 to 2006.
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