Black & Decker said Thursday it will cut 700 jobs, or about 3 percent of its workforce, and close a plant in Atlanta as part of a new restructuring plan.

The toolmaker made the announcement after reporting that the company's first-quarter earnings were down 37.6 percent from a year earlier, due to slumping housing market and the subprime mortgage crisis.

The U.S. housing downturn and related credit tightening have sharply lowered demand for tools, locksets and faucets, Chief Financial Officer Michael D. Managan said during a conference call with analysts.

The company expects to generate more than $10 million of savings in 2008 from the restructuring.