Spain's Habitat Inmobiliaria has announced plans to lay off around 134 - about 34% of its staff in Spain - in response to the downturn in the Spanish real estate market. The company, which reported losses of EUR 313mln in 2007, has a total staff of 390 people in the country.
Spain's Habitat Inmobiliaria has announced plans to lay off around 134 - about 34% of its staff in Spain - in response to the downturn in the Spanish real estate market. The company, which reported losses of EUR 313mln in 2007, has a total staff of 390 people in the country.
Habitat took on a EUR 1.6 bn pile of debt at the end of 2006 when it acquired the real estate division of Ferrovial. The debt facility, agreed with 39 banks, is due to be repaid by 2014.
Earlier this year the company also said it would close up to 120 offices of its residential property services unit, Don Piso, on the back on a significant slowdown in the Spanish residential market following ten years of construction bonanza. Don Piso, which reported a drop in sales of 66% in 2007, is to cut 350 jobs.
According to Spanish newspaper El Economista, Habitat has also hired UK investment bank Rothschild to carry out a business review aimed at cutting down costs and finding new investors in the company.
Last week another Spanish property developer, Martinsa Fadesa, unveiled plans to cut 275 - 300 staff in Spain. The company has a total of 880 employees.
