A trimmed-down, reorganized Beazer Homes may be headed for further alterations as the troubled, Atlanta-based homebuilder tries to reinvent itself in the worst housing market in decades.

Beazer CEO Ian McCarthy, speaking to the Wachovia Homebuilding and Building Products Conference in Las Vegas, said the company is working feverishly to rein in costs, reduce its excess inventory of finished homes and meet a May 15 deadline for restating its quarterly financial reports for much of the last decade.

"We do believe 2008 will be a tough market, so we're well hunkered down," McCarthy said Friday.

Over the past year, Beazer has cut its workforce in half, withdrawn from the mortgage business, reduced its land holdings, eliminated some $50 million in materials costs and withdrawn from five metro housing markets across the country.

"We are trimming our land wherever we can. And obviously we are not developing beyond the sales pace that we need today," McCarthy said.

In the weeks ahead, McCarthy said the company may reduce its activity in its 40 remaining markets scattered across 19 states by examining market data to determine which of its four product categories are best suited for each market.

In addition to the slow pace of home sales, Beazer is facing two federal investigations into its mortgage lending practices and a collection of lawsuits from buyers, stockholders and pension plan participants.

The troubles began with reports last year about high foreclosure rates in Beazer neighborhoods in the Charlotte, N.C., area.

McCarthy said the company is working to resolve its legal challenges and putting measures in place to prevent any similar problems from arising in the future, including the appointment of an internal compliance officer and implementation of a new companywide ethics policy.

"These are difficult days for the company," McCarthy said. "We have to work through this. We are doing it as expeditiously as we can."