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RE/MAX Holdings cuts 7% of staff

Second wave of cuts in 14 months aimed at “streamline” of operations

RE/MAX Holdings Cuts 7% of Staff
RE/MAX Holdings CEO Nick Bailey (LinkedIn, Getty)

The parent company of RE/MAX announced the brokerage is making another cut to its staff.

RE/MAX Holdings plans on laying off 7 percent of staff, according to a Securities and Exchange Commission filing reported by Inman. Based on the 594 employees reported in its most recent recent annual filing, the outlet estimated that more than 40 jobs will be eliminated.

The layoffs are expected to be completed by the end of next month, according to the SEC documents. It will result in between $2.75 million and $3.25 million for one-time termination benefits pre-tax.

One already departed worker is the brokerage’s principal accounting officer, Adam Grosshans. Leah Jenkins, executive director of financial reporting and technical accounting with the parent company, was named his successor.

In addressing the layoffs, a spokesperson for the company cited “current economic headwinds in the real estate and mortgage sectors.” In addition to the brokerage, other subsidiaries include Motto Mortgage and wemlo, a mortgage loan processing company.

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The cuts come slightly more than a year after a previous round of layoffs at RE/MAX, which resulted in the termination of 17 percent of the staff, or roughly 120 people. Those cuts accompanied the end of RE/MAX’s booj platform, a suite of digital products to help agents and brokers.

RE/MAX’s revenue fell 10.6 percent year-over-year in the second quarter, totaling $82.4 million. Net income, which was slightly on the negative side in the first quarter, jumped into the positive column by $2 million.

As the housing market has turned upside down in the past 18 months, many residential brokerages resorted to layoffs to keep themselves afloat. The wave of layoffs has largely trickled down to the occasional splash, however, as brokerages have hunkered down into a new normal.

— Holden Walter-Warner

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BrokeragesLayoffsRe/max