Colliers CRE is to make 70 redundancies as part of a cost-cutting programme in the face of falling revenues.

In a trading statement today, it said it had taken the steps to shore up its business after revenues fell a third from £117m in 2007 to £78m last year.

Sir John Ritblat, chairman of Colliers, said: ‘It’s not the decline in property pricing itself that adversely influences our revenue levels, it’s the fall off in activity, whether in capital or corporate markets.

‘However, as surely as night follows day, activity levels will recover and this, combined with the diversity of our offer, the quality of our people and the decisive action we have taken on costs, means the group is very well placed going forward.’

Colliers said it had cut its costs to £15m a year, which would ensure the cost base for 2009 was up to 10% below 2008 revenues.

The firm has also cut its net debt to a level below expectations, from £16m at 30 June to £13m today.

The firm said further falls in the value of commercial property and bank lending constraints would combine to prevent a recovery before the second half of 2009. However, it said it expected a ‘modest’ pick up in investment activity at that point.