CB Richard Ellis downsizes

CB Richard Ellis Inc. has laid off an undisclosed number of employees as part of a national restructuring plan. The layoffs include John Blumer, managing director of its Baltimore office, a company official said.

Sources familiar with the restructuring said about 200 workers have been laid off. Robert McGrath, spokesman for CB Richard Ellis, declined to disclose the exact number of workers, citing federalSecurities and Exchange Commission regulations.

McGrath described the layoffs as “modest.” He also said the company would disclose more information about the layoffs in its third-quarter earnings.

Blumer declined to comment. He referred calls to John Germano, executive managing director for CB Richard Ellis’s mid-Atlantic region, who could not be reached for comment.

But in an e-mailed statement, Germano said: “Like the rest of the commercial real estate industry, CB Richard Ellis is operating in an extremely challenging environment. We must act decisively to ensure we’re in the best position to accomplish our goals, both now and when the economy turns.”

Liz Wainger, a spokeswoman for CB Richard Ellis, said Germano disputed the number of managers laid off as part of the restructuring. She was unable to provide the exact number.

One of the largest commercial real estate firms in the country, CB Richard Ellis (NYSE: CBG) has seen a significant drop in income over the past year due to the sharp drop in commercial real estate sales and leasing activity.

In July, the company reported net income for its second quarter of $16.6 million, down from $141.1 million for the same quarter of 2007. Its share price has fallen from $28.62 per share as of Oct. 15, 2007, closing at $7.79 a share Tuesday.