Industry News

Cendant to slash $50M in costs through real estate office closures

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Cendant Corp. plans to cut costs at real estate brokerage company NRT Inc. by about $50 million this year through a cost-cutting strategy that includes office closures, Cendant chairman and CEO Henry Silverman said today during an earnings presentation. "To counter the impact of a slowdown at NRT we have put in place a cost-reduction program, which principally includes consolidating local offices in order to right-size NRT's cost structure to be in line with reduced volumes," Silverman said during a discussion of the company's fourth-quarter earnings and full-year earnings for 2005. "We think we can take out about $50 million of cost initially. That requires some office closings. It's not a dollar-per-dollar benefit because you do have some breakage -- you do lose some of the benefit of having the agents in those offices who may even work for the person across the street if they like that particular location." The company is expected to realize the financial benefits of the cost-cutt...