Brookfield Properties retail division lays off 20% of its workforce

0
68


One of the nation’s largest retail real estate owners, Brookfield Properties, suffers a major round of job cuts, CNBC has learned, as the coronavirus pandemic weighs on its business and new rental business in its shopping centers are drying up.“While many companies rushed to implement time off and layoffs early in the pandemic, we made a conscious decision to keep our entire team employed while gaining a better understanding of its long-term impact on our company, ”said Jared Chupaila, the CEO of Brookfield Properties’ retail group, said this week in an email to employees, which was obtained by CNBC.

However, he said, the mall owner has now decided to make cuts “to align with the future scale of our portfolio.”

Chupaila said the cutbacks will affect around 20% of the company’s workforce, both at company headquarters and rental agents in the field. The size of Brookfield Properties’ total workforce in its retail division was not immediately clear.

Brookfield Properties has more than 170 retail properties in 43 states, according to its website, including Brookfield Place in downtown New York and Fashion Show Mall in Las Vegas. It added a number of malls to its portfolio when it acquired Chicago-based mall owner GGP for $ 9.25 billion in cash back in 2018.

Brookfield Asset Management’s real estate business employs approximately 22,000 people worldwide, according to its latest annual report, which includes other asset classes such as office space.

A Brookfield rep declined to comment.

A number of other commercial property owners have felt similar pain. The owner of the Tennessee-based mall, CBL & Associates, is expected to file for bankruptcy no later than October 1.

The country’s largest owner of US shopping centers, Simon Property Group, took 30% of its workforce on leave in March as it was forced to temporarily close its shopping centers across the country. It also permanently laid off some of its employees at the time.

LEAVE A REPLY

Please enter your comment!
Please enter your name here