Redfin Announced Wednesday It Is Laying Off 862 Employees. This Is 13% Of Its Staff. They Also Stated They Are Getting Out Of The iBuying Business.
Redfin CEO Glenn Kelman wrote in an email to employees that the company is “laying off 862 brilliant, loyal people.”
He also added that the company was closing RedfinNow. Redfin Now was the company’s ibuying business.
218 RedfinNow employees could also find their jobs on the chopping block.
Redfin is releasing its third-quarter earnings report this afternoon.
Kelman told employees that the company will still need home-services employees for Redfin’s concierge service.
The layoffs will reduce Redfin’s staff by 13%. This means the company has about 6,630 employees. Redfin has already laid off 27% of it’s employees since April 30.
He said Redfin also has also eliminated the roles of 218 employees.
The company is offering affected employees severance packages. These severance packages includes 10 to 15 weeks of pay depending on tenure. In addition, the company is offering healthcare coverage for three months.
Redfin expects to complete the purchase of home it is contractually obligated to buy. It will also finish renovating and sell such properties as quickly as possible. The company said that as of October 31st, the inventory value of its housing portfolio was approximately $265 million. It also had another $92 million of real estate under contract to sell.
The company said that it recorded an $18 million write-down of inventory associated with RedfinNow. This was a result of purchasing homes during 2022 at higher prices. RedfinNow underestimated the values during the 2nd quarter of 2022.
RedfinNow properties segment will likely lose $22 million to $26 million this year. Kelman wrote in the email:
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