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November 11, 2008
Forest City in the News
The Cleveland Plain Dealer, Forest City says layoffs involved fewer than 160 people
Last week's layoffs at Forest City Enterprises involved fewer than 160 employees, up to 80 of them in the Cleveland area.
Forest City provided additional details about the layoffs Monday in response to inquiries from The Plain Dealer. The real estate company, based in Cleveland, said Wednesday that it was laying off a small percentage of its nationwide work force of 3,200, which included roughly 800 people in Cleveland.
A spokesman elaborated Monday, saying that the layoffs affected less than 5 percent of the company's employees and less than 10 percent of its Cleveland workers. He did not provide specific numbers. The layoffs resulted from the company's need to cut costs in the face of the economic slump and turmoil spreading from the housing market into the commercial real estate industry.
Current and former employees have described the mood at Forest City's headquarters in the Terminal Tower as tense and full of uncertainty. Some say they worry about what might happen if the economy sours further.
NoLandGrab: The mood at Forest City's Brooklyn subsidiary, run by cousin Bruce, can't be much better.
In this environment, Forest City has still been able to secure some money and move forward with projects. The company announced three deals Monday, comprising more than $167 million in financing.
The New York State Teachers' Retirement System provided a $75 million construction loan for a shopping center expansion in southern California. Wachovia Bank, RBS Citizens and the National Electric Benefit Fund teamed up on $67.5 million in construction financing for apartments in San Francisco. And KeyBank and Fannie Mae worked with Forest City on a $24.9 million refinancing of apartments in Cambridge, Mass.
MarketWatch, PRESS RELEASE: Forest City Announces $167 Million in Recent Financings
Posted by lumi at November 11, 2008 5:47 AM