With Luck, Irvine Co. Layoffs May Prove More Than Momentary Setback

Last week, our company announced it was laying off 60 employees, reducing our staff to 326--our smallest work force since the mid-1960s. The move was driven by a discouraging but, we believe, realistic reassessment of the prospects for near-term recovery in Orange County real estate.

Many of the news accounts of this action simplistically compared the Irvine Co.’s largest employee count (1,500 in December 1985) to today’s level. This is comparing apples to oranges.

We are a different company than we were in 1985, following a fundamental change in our business strategy and operations. Today, we no longer perform all our operations in-house. Rather, we rely on outside companies to develop, lease, manage and market our income-producing properties, including apartments, office and industrial buildings and retail shopping centers.

At least 1,600 people work full time on Irvine Co. projects but wear the hats of these outside firms. They include leasing and management teams, retail managers, hotel workers and crews that run our golf courses, cable television and marina operations.

Our core Irvine Co. staff is leaner today, but it allows us greater flexibility to pursue our mission and adjust to the dynamics of the marketplace. At the same time, we’re creating and sustaining jobs throughout Orange County by working with the best firms in a diversity of disciplines.

LARRY THOMAS, Vice President, Corporate Communications, the Irvine Co.