O&Y Properties Corp., a commercial real estate developer with a sizeable Ottawa portfolio, is cutting jobs as it focuses "on national clients and larger contracts."
The Toronto-based company said it will cut 275 jobs and refocus its Enterprise unit.
O&Y Enterprise is the country's largest third party commercial real estate management services company, with more than 80 million square feet under management.
Floriana Cipollone, VP of corporate planning and strategy, couldn't say how many of the cuts to the Enterprise operation could occur in Ottawa.
"We can't comment at this time," she said. "We're still working out the details."
She said more will be known in a few weeks time.
Ottawa represents the largest part of the company's Property portfolio, with 40 per cent, or about 1.933 million square feet, of its overall space located in the nation's capital. The space is divided among three properties ?Jean Edmonds Towers, and Place de Ville I and II.
Cipollone could not say how many staff are in the city among the company's operating units.
O&Y said in a statement it will also seek buyers for "a select portfolio of smaller management contracts that can be spun off as a separate business.?
"We expect an estimated 275 jobs, representing approximately 20 per cent of the real estate services workforce, to be affected across the country, of which approximately 200 are expected to be transferred in connection with a potential sale."
The restructuring will incur a pre-tax charge of $7 million to $9 million, reducing net income for the fiscal year by $4 million to $6 million. The latest move follows a series of restructurings last year that cost the company $4.5 million.
O&Y said it has "become clear that the changes in the real estate services market ?such as consolidation of ownership and internalization of management by REIT clients ?necessitated further restructuring of our real estate services business."
In August the company posted a profit for the three-month period ended in June of $2.9 million, or four cents a share. That compared to a profit of $6.1 million, or 11 cents a share, in last year's comparable period. Last year's comparable Q2 was only two months long due to a change in the company's fiscal year.
The Toronto-based company said it will cut 275 jobs and refocus its Enterprise unit.
O&Y Enterprise is the country's largest third party commercial real estate management services company, with more than 80 million square feet under management.
Floriana Cipollone, VP of corporate planning and strategy, couldn't say how many of the cuts to the Enterprise operation could occur in Ottawa.
"We can't comment at this time," she said. "We're still working out the details."
She said more will be known in a few weeks time.
Ottawa represents the largest part of the company's Property portfolio, with 40 per cent, or about 1.933 million square feet, of its overall space located in the nation's capital. The space is divided among three properties ?Jean Edmonds Towers, and Place de Ville I and II.
Cipollone could not say how many staff are in the city among the company's operating units.
O&Y said in a statement it will also seek buyers for "a select portfolio of smaller management contracts that can be spun off as a separate business.?
"We expect an estimated 275 jobs, representing approximately 20 per cent of the real estate services workforce, to be affected across the country, of which approximately 200 are expected to be transferred in connection with a potential sale."
The restructuring will incur a pre-tax charge of $7 million to $9 million, reducing net income for the fiscal year by $4 million to $6 million. The latest move follows a series of restructurings last year that cost the company $4.5 million.
O&Y said it has "become clear that the changes in the real estate services market ?such as consolidation of ownership and internalization of management by REIT clients ?necessitated further restructuring of our real estate services business."
In August the company posted a profit for the three-month period ended in June of $2.9 million, or four cents a share. That compared to a profit of $6.1 million, or 11 cents a share, in last year's comparable period. Last year's comparable Q2 was only two months long due to a change in the company's fiscal year.
