Redfin executes third wave of layoffs in a year

The cuts keep coming to residential players. 

Redfin laid off 201 people on Tuesday, the company confirmed to The Real Deal. The layoffs primarily affected the real estate support department, but some executives were also let go. 

Redfin cited the continuing housing downturn and general economic uncertainty for the cuts, which represented 4 percent of the Seattle-based brokerage. 

“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 an emailed statement, adding employees may be welcomed back in a stronger housing market.

Its the third round of cuts for the company, which is helmed by Glenn Kelman and has a market capitalization of about $950 million. Redfin in June laid off about 470 employees. In the fourth quarter, the company cut another 862 employees, roughly 13 percent of its workforce at the time.

Redfin also shut down the company’s iBuying division, Redfin Now, in the quarter. The company lost $62 million in the period, almost double its losses from the previous year, and revenue fell 25 percent year-over-year to $480 million.

Employees impacted by the latest cuts are receiving 10 to 15 weeks of severance as well as three months of health benefits.

Waves of layoffs hit the world of residential brokerage during last year’s housing downturn, triggered by rising mortgage rates. In February, the Agency cut 15 people, or about 4 percent of its staff, amid an aggressive expansion push. 

Compass’ layoffs in January marked the company’s third round in one year as it strives to reduce its operating expenses. Anywhere Real Estate, which owns Corcoran, Coldwell Banker and Sotheby’s International Realty, conducted two rounds of layoffs between August and January, eliminating 11 percent of its staff.

Zillow, which cut 25 percent of staff when it shuttered iBuying operations in late 2021, laid off another 300 employees in October — an estimated 5 percent of the company, which claimed it planned to hire for tech roles.