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Redfin Lays Off 201 Employees In Third Round of ‘Painful’ Cuts Since June



The brokerage said the employees impacted by the latest round of layoffs were mostly in the real estate support department, but some executive were also let go.

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Redfin has executed another round of layoffs, the latest round of cuts as the company reacts to a down housing market.

The company confirmed to Inman that 201 employees were impacted by the latest round of layoffs were primarily in the real estate support department, but some unidentified executives were also let go. Those affected were l

The portal and online brokerage cited general economic uncertainty alongside the ongoing housing downturn as its reasoning for the cuts, which made up 4 percent of its staff.

“While another layoff is painful, especially for those leaving the company, Redfin must continue to adapt to the current economic climate,” the firm said in a statement. “The people leaving Redfin have been wonderful colleagues, and if they wanted to return, we’d welcome them back in a stronger housing market.”

Those affected will receive 10-15 weeks of severance depending on tenure and healthcare coverage for three months.

It is the third round of cuts for the company since the housing market began to shift in 2022 on the heels of higher mortgage rates. In June it laid off about 470 employees, representing 8 percent of its headcount at the time. In the fourth quarter of 2022 it shed another 13 percent of its staff and shuttered its nascent iBuying operation RedfinNow.

The effect of the down market on Redfin’s finances was on full display in its fourth quarter earnings report. Its revenues during the quarter were down 25 percent from the year prior, and its losses increased to $61.9 million from $27 million a year before.

In announcing their November round of layoffs, CEO Glenn Kelman predicted that the market would continue to shrink throughout 2023.

“A layoff is awful but we can’t avoid it. We plan to keep increasing our share of the market, but that market in 2023 is likely to be 30% smaller than it was in 2021,” he wrote in an all hands email. “The June layoff was a response to our expectation that we’d sell fewer houses in 2022; this layoff assumes the downturn will last at least through 2023.”

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