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Redfin has executed another round of layoffs, the latest round of cuts as the company reacts to a down housing market.
The company confirmed to Inman that 201 employees were impacted by the latest round of layoffs were primarily in the real estate support department, but some unidentified executives were also let go. Those affected were informed on Tuesday.
The portal and online brokerage cited general economic uncertainty alongside the ongoing housing downturn as its reasoning for the cuts, which made up 4 percent of its staff.
“While another layoff is painful, especially for those leaving the company, Redfin must continue to adapt to the current economic climate,” the firm said in a statement. “The people leaving Redfin have been wonderful colleagues, and if they wanted to return, we’d welcome them back in a stronger housing market.”
Those affected will receive 10-15 weeks of severance depending on tenure and healthcare coverage for three months.
It is the third round of cuts for the company since the housing market began to shift in 2022 on the heels of higher mortgage rates. In June it laid off about 470 employees, representing 8 percent of its headcount at the time. In the fourth quarter of 2022 it shed another 13 percent of its staff and shuttered its nascent iBuying operation RedfinNow.
In an all hands email sent to Redfin staff on Tuesday and viewed by Inman, Redfin CEO Glenn Kelman cited lacking sales as the primary reason for the layoff.
“The reason for the layoff is the same as before: not enough sales,” he wrote. “We’re starting to take share again, from other listing-search sites and, we hope, from other brokers too, but not fast enough to offset the market-wide decline caused by high interest rates and broader economic jitters. Since many employees in support and sales management get sales bonuses, balancing staffing to sales is important not only to Redfin’s income, but also to employees’ income.”
Kelman added that he still expects the company to break even this year.
The effect of the down market on Redfin’s finances was on full display in its fourth quarter earnings report. Its revenues during the quarter were down 25 percent from the year prior, and its losses increased to $61.9 million from $27 million a year before.
The real estate industry at large has gradually been shedding staff since mortgage rates hit 20 year highs in 2022. Compass executed its third round of layoffs in January as it struggles to reduce its operating expenses. Anywhere has conducted two rounds of layoffs between August and January, reducing its staff by 11 percent total, while portal giant Zillow laid off 300 staffers in October.
One of the employees affected by the most recent cuts was Patty Rivas, who worked as a transaction coordinator for Redfin for four years.
Unfortunately I am one of the 200 people laid off from Redfin today. It’s been a big roller coaster ride the last 4 years with Redfin, but wouldn’t trade it for anything,” she wrote in a Linkedin post on Wednesday. “Redfin has laid off amazing, hard working, and dedicated employees, which are hard to find [nowadays]. I am a true believer, when one door closes, another one opens.”
