Redfin and Compass lay off hundreds of workers as housing market cools, inflation spikes

Both real estate firms blame cooling housing market and rising inflation

Two well-known real estate companies fired hundreds of people on Tuesday because they expected home sales to slow down across the country and interest rates to go up

Redfin and Compass, two companies that make software for the real estate industry, each let go of more than 900 employees.Glenn Kelman, the CEO of Redfin, said in a blog post that the company is letting go of about 470 workers, or about 6 percent of its staff, because demand in May was 17 percent lower than expected.

"We raised hundreds of millions of dollars so we wouldn't have to let people go after just a few months of uncertainty," Kelman said. "But mortgage rates went up more quickly than ever before in history. We could have fewer home sales for years, not just months, and Redfin still wants to do well. I don't know what puts a company through hell more than going from $97 per share to $8 per share."

In an email to USA TODAY, Compass said that the company is letting go of about 450 people, which is about 10% of its staff.Most Americans say now is not a good time to buy a house.

JOY AND PAIN: For crying out loud, a recent survey found that most US home buyers in today's market were moved to tears

The layoffs are happening at a time when the housing market, which used to be very hot, is starting to cool down because of high mortgage rates and inflation rates of about 6%. On Tuesday, the stock of both Redfin and Compass went down. Redfin's stock went down nearly 5%, and Compass's stock went down more than 10%.

Kelman said that the laid-off Redfin employees will get 10 weeks of base pay, plus an extra week of pay for every 12 months of service beyond the first year, up to a maximum of 15 weeks of pay. Kelman said the Seattle-based company is also giving its former employees three months of health insurance, which should last them through the end of summer.

"Today's layoff is due to shortfalls in Redfin's revenue, not the people being let go," Kelman said. "But our culture has been making an important shift toward performance and profits for a while now."

In an email, a Compass representative said, "Due to clear signs of slowing economic growth, we've taken a number of steps to protect our business and cut costs. These include putting an end to expansion plans and making the hard decision to cut the number of employees by about 10%."

You may like to read the following news as well :

Yellowstone closes after 'unprecedented' rain washes out roads

Drug to treat alopecia approved by FDA

Commanders coach Ron Rivera says Jack Del Rio apologized to team for Jan. 6 'dust-up' comments


Comments

Post a Comment

Popular posts from this blog

Commanders coach Ron Rivera says Jack Del Rio apologized to team for Jan. 6 'dust-up' comments

Image
Ron Rivera, the coach of the Commanders, says that Jack Del Rio apologised to the team for his comments on January 6 Image Source Ron Rivera , the head coach of the Washington Commanders, said that defensive coordinator Jack Del Rio talked to the team Tuesday morning and apologised for comments he made last week in which he called the attempt at an uprising on January 6 a "dust-up." Del Rio has taken a lot of heat for his comments, and on Friday he was fined $100,000. They happened after he tweeted on June 6 that the attack on the Capitol on January 6 would be like protests in the summer of 2020 over the death of George Floyd. Rivera said at a press conference on Tuesday, "Jack talked to the team this morning at the team meeting." "He was very honest, very open, and very sorry. He said he was sorry and invited any player to come in and talk to him or ask him questions. He has already talked to some of our players about what was said when he met with some of the
Read more

‘These Two Men Were Loved': Two Officers Die in El Monte Shooting

Image
The man who attacked the officers, who the law enforcement sources described as a 35-year-old man well known to El Monte police, was shot dead at the scene. Image Source On Tuesday afternoon, two El Monte police officers were shot and killed while responding to a domestic violence call at a motel. Investigators say the man who opened fire on the officers was killed at the scene. The officers, one of whom had been on the job for 22 years and the other for less than a year, were not named, but they were praised as heroes. Ben Lowry, the interim chief of the El Monte Police Department, said Tuesday night, "These two men were loved." "They were good men, and they gave their lives trying to help someone in their community. City officials and several law enforcement sources say that around 5:00 p.m., the two officers were sent to the "Siesta Inn" on Garvey Ave. because there was a report of a possible stabbing. Captain Andrew Meyer of the LA County Sheriff's De
Read more

Semenax Reviews and Benefits?

Image
  Official Website:  Click Here Overview of  Semenax  Reviews This is a potent substance that helps restore the body's vitality and stamina. It is a potent supplement containing some remarkable elements that increase the body's general functioning. Please describe the product in detail. Here is the best male enhancement supplement, which contains all-natural and beneficial elements for the body, in order to improve the body's degree of health and functionality.  Semenax  is the finest technique to enhance the body's general functioning and reduce sensual health issues. Aging has numerous negative impacts on the body. As a person ages, they experience various sensual health issues and body disorders. There is a considerable likelihood that aged individuals suffer from sensual health difficulties and seek a healthy and efficient remedy. This is a potent substance that helps restore the body's vitality and stamina. It is a potent supplement containing some remarkable e
Read more