Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHICAGO-TrizecHahn Corp.’s accounting, payroll and information systems will be based here under a reorganization plan that includes 200 layoffs unveiled by the Toronto-based office building owner. Those operations are being run at the company-owned Sears Tower by chief financial officer Gregory Hanson, hired away from GE Capital Real Estate last month.

Hanson, president Casey Wold and Antonio Bismonte will report directly to president and chief executive officer Christopher Mackenzie. Wold will oversee capital transactions, including an upcoming $1.44 billion in commercial mortgage pass-through certificates, as well as disposition of non-core North American assets. Bismonte will be in charge of operations and leasing, overseeing regional heads Steve Budorick, Paul Layne and Doug Winshall.

The layoffs, which include 19 senior managers, represents 15% of TrizecHahn’s US and Canadian work force. TrizecHahn will take a charge of up to $40 million in the second quarter to pay for severance, benefits and other costs of the reorganization. The company expects to recoup $24 million in savings from the move in 2002 and 2003.

“This reinforces our continued commitment to focus on our core US office business, enhance our operating efficiency, and improve shareholder value,” Mackenzie says. “The new management organization clarifies responsibilities and provides strong and aligned leadership from which to drive our strategy.”

The cuts were signaled in investor conference calls in May, when Mackenzie indicated the company was looking at ways to streamline operations, including centralizing back-office operations. Among the initiatives are streamlining the leasing process, which company employees are examining rather than outside consultants hired by the company, according to Mackenzie.

“These are programs designed to improve our productivity and above all, customer service,” Mackenzie said.

Most recently, TrizecHahn paid $76 million for its fifth Downtown Chicago holding, 550 W. Washington Blvd., giving it 6 million sf in the market, more than half of it in Sears Tower. The company uses 24,500 sf at Sears Tower for its Chicago staff but has not determined if it will need more space as a result of the consolidation.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.