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

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

During the third quarter, the company anticipates taking chargesof approximately $25 million to $30 million related to contracttermination costs, of the write-off of capitalized costs at certainprojects, the impairment of completed spec homes in severalcommunities and the write-off of goodwill related to Sunshine StateCypress Mill. "A restructured Joe will benefit from a strongerbalance sheet," Rummell said.