Virtual brokerage eXp slashes 15% of staff

Firm announced other cost-cutting measures despite preliminary Q1 earnings that show strong growth amid Covid uncertainty

TRD NATIONAL /
Apr.April 08, 2020 03:52 PM
eXp Realty CEO Jason Gesing
eXp Realty CEO Jason Gesing

eXp Realty’s remote-work model may have spared it some of the transition pains suffered by traditional brokerages in the age of social distancing, but the virtual brokerage is hardly immune to the effects of the economic downturn.

The Washington-based firm announced Wednesday it had reduced headcount by about 15 percent across the company, among a swathe of cost-cutting measures it is taking in response to the economic fallout of the coronavirus pandemic.

“Staff departures aren’t easy, but we are doing this with the utmost respect for each and every person,” eXp Realty CEO Jason Gesing said in a statement. “We are grateful for the contributions of those who are leaving us. However, we are confident about our business model and these changes are the right thing to do to put eXp on a stronger path to grow when business — and life — returns to normal.”

The company also released preliminary business highlights from the first quarter, once again highlighting the dramatic growth trajectory eXp has been on since going public last May. Agent and broker headcount was up 59 percent year-over-year at 28,449, while residential transaction volume nearly doubled to $11.2 billion.

In other cost-cutting moves, eXp has eliminated business travel for staff, while the firm’s executives and board members have taken significant salary and compensation cuts. Additionally, some staff have been transferred from eXp Realty to work on immersive technology platform VirBELA, which is also owned by eXp Realty’s parent company, eXp World Holdings.

eXp says that VirBELA, which allows companies — including eXp Realty itself — to create Sim City-style virtual worlds for employees to work in, has seen increased interest during the coronavirus crisis.

In his statement, Gesing called the outbreak a global health crisis “unlike anything we’ve ever seen in our lifetimes, and our hearts go out to everyone impacted around the world, especially our agents, staff, partners and their families. From day one, we have run a lean and agile business so that eXp would be sustainable for the future.”


Related Articles

arrow_forward_ios
Single-family and condo home sales were up sharply in L.A. County in June

“Massive release of demand”: LA County June home sales surge

“Massive release of demand”: LA County June home sales surge
Michael Rosenfeld and a rendering of Century Plaza (Credit: Presley Ann/Getty Images for THR)

Inside Michael Rosenfeld’s $1.8B odyssey at Century Plaza

Inside Michael Rosenfeld’s $1.8B odyssey at Century Plaza
An illustration of Gov. Gavin Newsom (Credit: Justin Sullivan/Getty Images)

LA County ordered to shut indoor dining for 3 weeks as Covid cases climb

LA County ordered to shut indoor dining for 3 weeks as Covid cases climb
Brookfield Asset Management CEO Bruce Flatt and Woodridge CEO Michael Rosenfeld with 101 S. Marengo Avenue, and a rendering of the building (Credit: Google Maps)

CRE investment sales in LA sank like a stone in May

CRE investment sales in LA sank like a stone in May
John Zhao and a rendering of Oceanwide Center (Credit: Rendering © DBOX; Nora Tam/South China Morning Post via Getty Images)

Coronavirus forces another delay of Oceanwide Center sale in San Fran

Coronavirus forces another delay of Oceanwide Center sale in San Fran
Gov. Gavin Newsom (Getty)

Not so fast! A week after they reopened, state orders LA County bars to close

Not so fast! A week after they reopened, state orders LA County bars to close
Douglas Elliman CEO Howard Lorber and West Coast exec Stephen Kotler

In “new world of real estate,” Elliman exits Montecito office

In “new world of real estate,” Elliman exits Montecito office
LAHSA Executive Director Heidi Marston

LA County targets $800M to house the homeless

LA County targets $800M to house the homeless
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...