The changes are part of plans to shift the company from an "end-to-end" developer to a supplier of entitled land and development partner, the St. Joe Co. chairman and CEO Peter Rummell said during a conference call Monday. "We think these are the logical next steps in the evolution of St. Joe," he said. "A restructured Joe will help us accelerate the transition of our land to their highest and best use."

The restructuring is expected to generate savings of approximately $10 million in 2008, $18 million in 2009, and $20 million in later years. The company expected to take a charge of approximately $7 million consisting of severance benefits to employees due to the changes.

During the third quarter, the company anticipates taking charges of approximately $25 million to $30 million related to contract termination costs, of the write-off of capitalized costs at certain projects, the impairment of completed spec homes in several communities and the write-off of goodwill related to Sunshine State Cypress Mill. "A restructured Joe will benefit from a stronger balance sheet," Rummell said.