{"id":3231,"date":"2022-06-14T16:46:21","date_gmt":"2022-06-14T16:46:21","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/14\/redfin-lays-off-8-of-workforce\/"},"modified":"2025-03-13T02:44:07","modified_gmt":"2025-03-13T02:44:07","slug":"redfin-lays-off-8-of-workforce","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/14\/redfin-lays-off-8-of-workforce\/","title":{"rendered":"Redfin lays off 8% of workforce"},"content":{"rendered":"\n

Redfin<\/strong> is laying off 470 employees, roughly 8% of its workforce \u2013 or about 6% if including those employed by RentPath<\/strong> and mortgage lending arm Bay Equity<\/strong>, according to an SEC report filed<\/a> on Tuesday.<\/p>\n\n\n\n

The brokerage cited housing demand<\/a> being 17% below Redfin\u2019s expectations in May as the main reason for the layoffs.<\/p>\n\n\n\n

\u201cTo all the departing people who put your faith in Redfin, I\u2019m sorry we can\u2019t keep our commitment to you. With May demand 17% below expectations, we don\u2019t have enough work for our agents and support staff, and fewer sales leaves us with less money for headquarters projects,\u201d Glenn Kelman, the firm\u2019s CEO, wrote in the 8K.<\/p>\n\n\n\n

In a statement to RealTrends, a company spokesperson said, \u201cWe’re offering the good people leaving several months of severance pay and healthcare benefits. We extend our deepest apologies; there is nothing worse in business than a layoff.\u201d<\/p>\n\n\n\n

According to the SEC filing, most of the cuts will affect software engineers, as well as those employed in the recruiting, training and licensing departments.<\/p>\n\n\n\n

Redfin attributed the engineering layoffs to many of the firm\u2019s software projects reaching completion, while the other layoffs were attributed to the drop in housing demand<\/a>.<\/p>\n\n\n\n

\u201cWhen we were turning away tens of thousands of customers in 2020 and 2021, we had to hire a thousand employees a month to catch up, requiring berserk levels of recruiting, training and licensing. There\u2019s no avoiding that those groups will be hardest hit today,\u201d Kelman wrote.<\/p>\n\n\n\n

Rising mortgage rates \u2013\u00a0now at 6% \u2013\u00a0were also to blame for the layoffs, according to Kelman.<\/p>\n\n\n\n

\u201cWe raised hundreds of millions of dollars so we wouldn\u2019t have to shed people after just a few months of uncertainty,\u201d he wrote. \u201cBut mortgage rates increased faster than at any point in history. We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive. If falling from $97 per share to $8 doesn\u2019t put a company through heck, I don\u2019t know what does.\u201d<\/p>\n\n\n\n

In the filing, Kelman stressed that the layoffs were part of Redfin\u2019s goal of becoming profitable<\/a> and that they were a result of shortfalls in Redfin\u2019s revenue and not a reflection of the performance of the people being let go.<\/p>\n\n\n\n

Redfin is offering laid-off employees 10 weeks of base salary, with an additional week of pay for every 12 months of service beyond one year capped at 15 weeks of pay. The firm will also extend health care coverage for laid off employees by three months.<\/p>\n\n\n\n

Kelman said the firm expects to grow more slowly as the housing market slows down.<\/p>\n","protected":false},"excerpt":{"rendered":"

Redfin is laying off 470 employees, roughly 8% of its workforce, according to an SEC report filed on Tuesday.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-3231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"\nRedfin lays off 8% of workforce - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"Redfin lays off 470 employees as housing demand dips 17% below expectation in May due to rising mortgage rates.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/14\/redfin-lays-off-8-of-workforce\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Redfin lays off 8% of workforce\" \/>\n<meta property=\"og:description\" content=\"Redfin lays off 470 employees as housing demand dips 17% below expectation in May due to rising mortgage rates.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2022\/06\/14\/redfin-lays-off-8-of-workforce\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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