Foresters, a unit of Standard & Poor’s, said Thursday it will slash $10 million in 2016 to keep pace with the surging market.
It will be the biggest cut since the financial crisis in 2007.
“The financial crisis and recession of the past two years has driven us to continue our focus on protecting the long-term sustainability of the Forests and the world’s financial system,” said Chief Financial Officer David Smith.
“In the first half of 2016, we expect our business to be $2.5 billion better than it was the year before.
The Forests are the world leader in protecting and conserving our forests, so we expect that trend to continue in the second half of this year and into the following year.
Forests provide us with a tremendous value in providing a high-quality resource for our customers, investors and consumers, and we are working to remain as resilient as possible through these challenging times.”
Forests have been under fire for years for the cost of preserving their forests and the environmental impacts of cutting them.
Since 2013, the company has been cutting prices on its carbon credits to offset its carbon footprint.
In an effort to remain sustainable, Forests said it will not cut production, and instead, will focus on maintaining a small business footprint through partnerships and new investments.
Its shares have been flat for the last few years.
Forests also said it expects to generate a net income of $1.8 billion in 2016, compared with $1 billion in the prior year.
Foresters shares are down 0.3% in afternoon trading.