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EOPlus Launch Nearing Completion

CHICAGO-With 169 management offices now consolidated into 48 and a list of 950 vendors pared to 88, annual costs savings are now projected at more than $75 million beginning in 2004.

By Mark Ruda | Updated on July 30, 2003

CHICAGO-Equity Office Properties Trust has combined 169 management offices into 48, with eight of the company’s 10 regional office consolidations now complete. President and CEO Richard Kincaid said during a recent earnings conference call the EOPlus initiative is on track toward generating at least $75 million in costs savings in 2004.

Part of that savings will come at the expense of about 400 employees who have been part of a 16% cut in the REIT’s payroll, which Kincaid says is mostly complete.

The company expects $45 million to $50 million in savings next year to come from procurement of products and services, about 10% higher than previous estimates. The savings comes as a result of reducing the REIT’s list of vendors from 950 to 88.

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