Rocket Mortgage Is Offering 12 and 24 Weeks Of Pay In A Third Round Of Voluntary Buyout Offers
Rocket Mortgage is offering another round of buyouts to its employees. The buyout follows two rounds from last year. Those buy outs resulted in a workforce reduction of about 30% last year.
Rocket is offering between 12 and 24 weeks of pay. However, the severance package depends on the employee’s tenure at the company. The company is also offering extended benefits in some cases.
The lender is also providing compensation for banked personal time off. In addition, Rocket is also offering compensation for certain stock awards.
Former employees will receive outplacement services including one-on-one career coaching and job search assistance.
The company did not disclose the number of workers targeted through the buyout offers.
Rocket Companies delivered a $111 million adjusted net income loss in the first quarter, following a $197 million loss in the fourth quarter. The GAAP net loss in Q1 was $411 million, a decline from 2022 Q4’s $493 million.
Rocket is expected to release its second-quarter earnings in the coming weeks.
The lender has been cutting expenses and targeting purchase business.
The firm ended 2022 with 18,500 employees. This is a reduction of 7,500 people or 28.8% reduction compared to 2021.
News of headcount reductions became public in April 2022, when the lender offered buyouts to 8% of its staff at Rocket Mortgage and Amrock Title. It targeted around 2,000 or so workers.
The company offered additional buyouts when the mortgage market deteriorated in the second half of 2022. The offers were made in August, and the company did not disclose further details on how many buyouts were taken.
Rocket Mortgage CEO Bob Walters told Housingwire:
If we’re not at or near a bottom, we’re getting close.
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