Seattle-based Redfin lays off 4% of its workforce
Apr 13, 2023, 11:59 AM
Seattle-based Redfin laid off 201 employees on Tuesday, approximately 4% of its workforce.
GeekWire reported the cuts were made in response to the housing downturn and ongoing economic uncertainty.
This is the third time in less than a year the company has let people go. Redfin would not confirm where those cuts would come from.
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“While another layoff is painful, especially for those leaving the company, Redfin must continue to adapt to the current economic climate,” the company said in a statement.
Redfin said last November that it would end its home-flipping program RedfinNow and eliminate 862 positions. That came after an 8% workforce reduction last June.
Redfin revenue fell 25% in the fourth quarter after mortgage rates and a slow housing market kept many on the sidelines. The company also reported a net loss of $61.9 million, compared to $27 million lost in the same quarter last year.
Redfin reported in January that the housing market had begun to recover. That claim cited increases in the number of users requesting tours and contacting agents to start the home-buying process. In King County last month, the median home price was down 10% from March 2022, and the number of pending home sales was down 33%.
The most recent round of cuts will mostly affect workers in the real estate support segment. Laid-off employees will receive 10 to 15 weeks of severance depending on tenure and healthcare coverage for three months, according to the spokesperson.
Cooling housing market prompts layoffs at Redfin
“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 company spokesperson said in a statement.
A number of real estate tech companies have laid off employees in Washington state over the last year in response to the market downturn, including Zillow, Flyhomes, Compass, and others.
Redfin’s net loss in 2022 was $321 million, more than double its $110 million loss the year before.