Commercial property consultant Colliers CRE today announced 70 job cuts in London as it battles the worst crisis in the market for decades.

The firm, led by the grand old man of British property Sir John Ritblat, said it was shedding 10% of its 700-strong workforce in the West End and the City, having already axed more than 100 agents and administration staff around the world.

Some of those facing the chop include senior managers who earned more than £100,000 a year including bonuses during the property boom. The cuts will save Colliers £15 million a year.

It came as yet another blow to the beleaguered commercial property sector where thousands of staff have lost their jobs as firms such as CB Richard Ellis, Savills, DTZ and Jones Lang LaSalle cut costs in the downturn.

Sir John, Colliers chairman and former head of British Land, 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.”

Colliers said revenues were down from £117 million in 2007 to £78 million in 2008 as transaction levels — the buying and selling of offices and other commercial property — collapsed. The UK made up £74 million of the revenues in 2008 with the rest split between Ireland and Spain.

Colliers shares, worth 218p two years ago, fell 1p to 141/2p today.

Property prices have crashed 35% since their peak in July 2007 including a 27% slump last year alone, according to figures from industry analyst IPD.

One of the worst-hit areas is the City of London as demand for office space evaporates and buyers struggle to raise funds or wait for prices to fall further.Sir John warned that the freeze in bank lending and further falls in prices will “prevent an upturn of any substance” in the first half of 2009, but raised hopes of a pick up in activity later in the year “as investors buy [at the bottom of] the U”.

He said there are “some encouraging signs of partial recovery” as the weak pound encourages sovereign wealth funds and German property funds to look for bargains.