Redfin Lays Off 201 Employees In Third Round of ‘Painful’ Cuts Since June
The brokerage stated the staff impacted by the most recent spherical of layoffs had been largely in the actual property assist division, however some govt had been additionally let go.
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Redfin has executed one other spherical of layoffs, the most recent spherical of cuts as the corporate reacts to a down housing market.
The corporate confirmed to Inman that 201 workers had been impacted by the most recent spherical of layoffs had been primarily in the actual property assist division, however some unidentified executives had been additionally let go. These affected had been knowledgeable on Tuesday.
The portal and on-line brokerage cited basic financial uncertainty alongside the continued housing downturn as its reasoning for the cuts, which made up 4 p.c of its workers.
“Whereas one other layoff is painful, particularly for these leaving the corporate, Redfin should proceed to adapt to the present financial local weather,” the agency stated in an announcement. “The individuals leaving Redfin have been fantastic colleagues, and in the event that they wished to return, we’d welcome them again in a stronger housing market.”
These affected will obtain 10-15 weeks of severance relying on tenure and healthcare protection for 3 months.
It’s the third spherical of cuts for the corporate because the housing market started to shift in 2022 on the heels of upper mortgage charges. In June it laid off about 470 workers, representing 8 p.c of its headcount on the time. Within the fourth quarter of 2022 it shed one other 13 p.c of its workers and shuttered its nascent iBuying operation RedfinNow.
The impact of the down market on Redfin’s funds was on full show in its fourth quarter earnings report. Its revenues throughout the quarter had been down 25 p.c from the yr prior, and its losses elevated to $61.9 million from $27 million a yr earlier than.
In asserting their November spherical of layoffs, CEO Glenn Kelman predicted that the market would proceed to shrink all through 2023.
“A layoff is terrible however we will’t keep away from it. We plan to maintain growing our share of the market, however that market in 2023 is prone to be 30% smaller than it was in 2021,” he wrote in an all fingers e-mail. “The June layoff was a response to our expectation that we’d promote fewer homes in 2022; this layoff assumes the downturn will final no less than via 2023.”
The true property business at massive has steadily been shedding workers since mortgage charges hit 20 yr highs in 2022. Compass executed its third spherical of layoffs in January because it struggles to scale back its working bills. Anyplace has carried out two rounds of layoffs between August and January, decreasing its workers by 11 p.c whole, whereas portal big Zillow laid off 300 staffers in October.
One of many workers affected by the newest cuts was Patty Rivas, who labored as a transaction coordinator for Redfin for 4 years.
Sadly I’m one of many 200 individuals laid off from Redfin as we speak. It’s been a giant curler coaster journey the final 4 years with Redfin, however wouldn’t commerce it for something,” she wrote in a Linkedin put up on Wednesday. “Redfin has laid off wonderful, onerous working, and devoted workers, that are onerous to seek out [nowadays]. I’m a real believer, when one door closes, one other one opens.”
E mail Ben Verde