UPDATE: CBRE Warned of Cutbacks Last Week

LOS ANGELES-In a quarterly filing with the SEC last week, CB Richard Ellis Inc. said, “No workforce reductions are contemplated in connection with the acquisition” of the publicly traded company by its senior management and directors, which is set to close this summer. It did, however, warn that cutting measures associated with a slowdown in the industry were likely if the current economic trend continues.

Whether they expected the climate to turn in just one week is unclear, but after a two-day meeting earlier this week with the executive committee, the international real estate services company announced this morning (Wednesday) the workforce reductions will indeed occur, due to “a recent decline in revenues congruent with the overall decline of commercial real estate activity.”

CEO Ray Wirta explained the situation in a prepared statement saying, “In the latter part of the first quarter of 2001, our business was adversely affected by a slowdown in the U.S. economy in general, and certain local and regional U.S. economies in particular, which have led to deteriorating commercial real estate market conditions.”