Friday, HFF Inc. (HF), a real estate and capital markets service provider, said that in view of the continued negative trends in global and domestic economies and capital markets, it has taken additional steps, including the elimination of 44 positions, to reduce certain fixed operating expenses.
Together with earlier announced cost saving measures, the company expects to reduce operating expenses by 30% from last year. Altogether, approximately $9.8 million of savings in fixed operating expenses is expected, compared to 2008. These cost-saving efforts are effective April 1, 2009.
The Pittsburgh, Pennsylvania-based company said that it is eliminating 44 positions or 10.2% of total employees when compared to 433 employees at December 31, 2008. With these latest reductions, the company's employee count now stands at 389, including 168 producers, which represents a 20.6% overall net decrease in the number of employees, but only a 3.5% net decrease in producers.
Cost-saving initiatives were indicated as directly related to the compensation of senior transaction professionals, who have agreed to reduction and/or elimination of the salaries, which when annualized total approximately $1.85 million.
The suspension of the company's 401(k) match is expected to result in annualized savings of $1.1 million. The salary reductions of certain specific support staff will provide approximately $0.6 million of annualized cost savings.
HF closed Friday's trading up $0.07 or 3.29% at $2.20 on a volume of about 33 thousand shares.
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