Global real estate firms Jones Lang LaSalle and Cushman & Wakefield have both announced job cuts. For Jones Lang LaSalle, a publicly traded company on the NYSE, the move is a cost-containment measure. For Cushman & Wakefield, a privately owned company, sources say the move was made to increase productivity.
Chicago-based Jones Lang LaSalle is laying off 675, or about 9%, of its work force of nearly 7,500. Sources said the effort could save the company $45 million per year. The firm recently revealed a net loss of $6.2 million, or $0.21 per share, along with revenues of $216.6 million, a 3.4% drop in the third quarter. Many of the layoffs will take effect in the fourth quarter.
Jones Lang LaSalle’s job cuts stemmed from the economic decline that began early this year and was exacerbated by the Sept. 11 terrorist attacks, company executives said. "This economic uncertainty has clearly affected our business in all our regions as clients delay, postpone and in some cases cancel their real estate decisions," said Stuart Scott, Jones Lang LaSalle chairman and CEO. "Our response has been to manage our own costs, actively and aggressively, redirecting and restructuring our operations to adapt to changing conditions."
In a move designed to improve productivity, New York-based Cushman & Wakefield laid off about 90 brokers and 80 staff. The company maintains these cuts were not a cost-containment measure, but a move to bolster company efficiency.
