Denver-based real estate giant RE/MAX announced that it was laying off 7% of its staff on Friday. According to the company’s filing with the Securities and Exchange Commission, layoffs were part of a reorganization, which RE/MAX said is “intended to streamline the Company’s operations and yield cost savings over the long term.”
The filing stated that RE/MAX expects the reorganization to be substantially complete by the end of the quarter. RE/MAX also noted that the reorganization will result in a pre-tax cash charge for one-time termination benefits between $2.75 million and $3.25 million.
In the same filing, RE/MAX announced that it had let go of Adam Grosshans, the firm’s principal accounting officer, as part of the reorganization. Leah Jenkins, who currently serves as executive director of financial reporting and technical accounting, was named vice president and chief accounting officer. She was also appointed as RE/MAX’s new principal accounting officer.
“These measures are strategically designed so that we are better positioned to continue executing on growth initiatives for our networks and driving value for our stakeholders,” the company said in a statement. “Growth of the RE/MAX and Motto Mortgage networks is a collective advantage, and our commitment remains steadfast in delivering a greater return for all. Though it is difficult to say goodbye to teammates, their contributions are greatly appreciated and they are leaving with our utmost gratitude and support.”
RE/MAX laid off 17% of its staff, roughly 120 employees, a little over a year ago. The July 2022 layoff impacted technology workers, including operators of the booj platform, as RE/MAX shutdown booj prior to partnering with Inside Real Estate and its kvCORE platform.
During the second quarter of 2023, RE/MAX recorded a 10.6% annual decline in revenue to $82.4 million, and a net income of $2 million, down from $5.8 million a year prior. The firm has also struggled to maintain its U.S. agent count in recent months. In Q2 2023, U.S. agent count was down 6.3% year over year, to 56,987 agents.