Calabasas-based brokerage Marcus & Millichap Inc. will lay off 175 salaried employees, or 20 percent of its 877-person workforce, as the coronavirus outbreak ripples through the commercial real estate industry.
Marcus & Millichap Chief Executive Hessam Nadji, who has already taken a salary reduction during the pandemic, said the layoffs were necessary to protect the firm's balance sheet, according to a CoStar Group report.
The layoffs will come from the salaried staff sector of national firm and not from the brokers, who live on commissions and bonuses.
“Having been through many downturns in our 50-year history, we are confident MMI will gain share by providing exceptional client services through this cycle and achieve its long-term growth plans,” Nadji said in an emailed statement.
In all, Marcus & Millichap has 1,889 sale brokers and another 89 finance brokers.
Shares of Marcus & Millichap (MMI) closed Friday down 50 cents, or 1.8 percent, to $27.57 on the New York Stock Exchange.