German listed Colonia Real Estate has said it is laying off 20% of its staff and restructuring its operations and external consulting expenses to save at least EUR 9.5 mln annually. Colonia said the measures focus on four areas: consolidation of non-operating subsidiaries, cut back by diversification, separation or restructuring of business areas as well as external consulting expenses and staff reduction.
German listed Colonia Real Estate has said it is laying off 20% of its staff and restructuring its operations and external consulting expenses to save at least EUR 9.5 mln annually. Colonia said the measures focus on four areas: consolidation of non-operating subsidiaries, cut back by diversification, separation or restructuring of business areas as well as external consulting expenses and staff reduction.
Colonia said 25 employees, about 20% of the staff, are going to leave the CRE group. This includes the employees which left through the management buy-out of a subsidiary in the beginning of December. The other employees will leave the company by the end of the year or the end of March 2009.
CEO Stephan Rind said the important steps in the cost-cutting programme have been completed. 'Major steps are now taken such as the new organised subsidiaries and contracts with external consultants. Even after additional restructuring costs we expect administrative cost to be below EUR 4 mln in the fourth quarter,' he said.
