LP details spending cuts

In back-to-basics mode, company slashes payroll, spending plans

Email | Print By Geert De Lombaerde

Bloodied and bruised by the housing slump, Louisiana-Pacific today outlined more details of spending cuts intended to save it $235 million in 2009.

CEO Rick Frost had first discussed the cuts earlier this month, but didn’t have many details at the time. Today, he said his company has laid off about 200 people – 14 percent of its salaried work force – and frozen wages for the remaining workers. Also gone are the company’s flight department and its Franklin-based R&D operation. Those measures will produce about $30 million in savings.

These cuts are coming on top of a dividend suspension and capital spending cuts that will save another $145 million next year. To view LP’s full release, click here.

Shares of LP (Ticker: LPX) closed Tuesday trading at $1.62, down almost 15 percent on the day. Year to date, they’re down 88 percent.