Shares in CB Richard Ellis spiked last Friday after the company revealed that it had made redundancies in the US as part of a national restructuring.
CBRE would not specify how many US jobs had been cut, but said it would update the market on cost savings in its forthcoming third-quarter results.
The company’s shares rose by 37% and closed at $10 on Friday, following news of the restructuring in the US press. Earlier in the week, the shares fell to a low of $6.98 because of turmoil in the financial markets.
Earlier this week, as fears of a global recession grew, its shares fell another 34% to close at $6.60 on Wednesday.
John Germano, executive managing director for CBRE’s mid-Atlantic region in the US, said of the restructuring: “CB Richard Ellis is operating in an extremely challenging environment. We must act decisively to ensure we’re in the best position to accomplish our goals, both now and when the economy turns.”
CBRE shares have fallen 74% in the past year, as profits have dropped well below the peaks of 2006 and 2007. In its second quarter figures, CBRE reported an 88% fall in profits to $16.6m.
