The shifting and uncertain housing market conditions are still proving to be a challenge for Redfin. The brokerage laid off 201 employees, or about 4% of its total workforce, on Tuesday, as first reported by GeekWire.
This is the third round of layoffs for the firm in under a year. Last June, Redfin cut 470 employees, or roughly 8% of its staff, as mortgage rates began rising and the housing market began to rapidly cool. The firm underwent another round of cuts last November when it announced the closure of its iBuying business, RedfinNow. The November staff reduction left over 860 people, or roughly 13% of staff, without a job.
“While another layoff is painful, especially for those leaving the company, Redfin must continue to adapt to the current economic climate. The people leaving Redfin have been wonderful colleagues, and if they wanted to return, we’d welcome them back in a stronger housing market,” a Redfin spokesperson wrote in an email.
The most recent round of layoffs primarily impact employees in the real estate support segment of the firm. Impacted employees will receive 10-15 weeks of severance, depending on their tenure with the firm, as well as healthcare coverage for three months, according to a company spokesperson.
In 2022, Redfin recorded a net loss of $321.1 million, despite reporting a 19% year over year increase in revenue to $2.284 billion.
“2022 was a challenging year, but we’ve taken the right actions to position Redfin for long-term profitable growth,” Chris Nielsen, Redfin’s CFO, told analysts and investors on the firm’s fourth-quarter earnings call. “We are entering 2023 with appropriately conservative plans and the knowledge that the recovery may be touch and go, but it is comforting to see the start of the year tracking in line to slightly better than our expectations.
This story was updated to include commentary from Redfin.