The Agency is the latest real estate brokerage to be hit by the layoff bug in 2023. According to the firm, The Agency laid off 4% of its work force, or fewer than 15 of its staff members, last week.
“Due to the challenges presented by the current economic climate, we made the difficult decision to reduce less than 15 members of The Agency’s staff this week. We are not immune to the economic environment that all companies, especially real estate companies are facing right now,” Mauricio Umansky, the CEO of The Agency, wrote in an emailed statement.
“We would like to express our deepest gratitude for the contributions of all our employees. While this decision was not made lightly, we believe this positions us for future success. The Agency continues to make efforts to be fiscally responsible and is fundamentally committed to profitability and long-term, sustainable growth.”
Based on LinkedIn posts from former employees of The Agency, this appears to be the firm’s third round of layoffs in the last six months. Employees impacted by the recent rounds of layoffs held administrative and IT positions.
The start of the year has been a tough one for many firms in the real estate industry. Earlier this week, Wells Fargo announced that it had cut 140 jobs due to its exit of the correspondent channel, and in January, Anywhere Real Estate underwent another round of cuts — bringing its head count down 11% since the end of June 2022.
Meanwhile, while Compass announced its fourth round of layoffs since June 2022 just a few days into the new year.