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Is the housing market changing? Redfin announces layoff

Real estate giant Redfin announced on Tuesday that it will dismiss 8% of its employees as high mortgage rates have begun to choke the market and curb demand.

that is, The U.S. housing market is changing – When Still, prices remain high..

Glenn Kelman, CEO of Redfin, said: Message to employees Posted on Tuesday on Redfin’s blog. “May demand is 17% lower than expected, so there is a shortage of agents and support staff jobs, and low sales are running out of funding for the headquarters project.”

what’s happening: According to Kelman, managers spend hours calling people who leave the company. He also said Redfin hosted a simple “all-participation” meeting to answer questions.

“I said I wouldn’t fire people unless I needed to,” Kelman wrote. “we have to.”

Layoffs are “always a terrible shock, especially when you say you’re going to make a fuss to avoid layoffs, and you’ve raised hundreds of millions of dollars, so you won’t have to fire a few people,” Kelman said. “. Uncertainty for several months. ”

But mortgage rates “rise faster than at any point in history,” he wrote. “Home sales can last for years instead of months, but Redfin will continue to thrive. If the company goes down from $ 97 to $ 8 per share, I don’t know what to do. Hmm.”

Redfin Severance Details: According to Kelman, Redfin offers a 10-week base salary to dismissed employees, with an additional week’s salary up to a 15-week salary for every 12-month service over a year. .. For agent and support roles, severance pay includes an estimated productivity or sales bonus.

“This should give you until the end of summer to find a job,” he said.

What now? In his message, Kelman also said, “It’s time to make money.”

“Today we are losing a lot of good people, but in order for the rest to want to stay, we need to increase the value of Redfin. And to increase our value, we Must make money, “Kelman said. “We are grateful to everyone who has invested your time and treasure in this company to make a profit and make a lot of money.”

Kelman’s message also sought to answer the question, “Where are you going from here?” As the housing market enters what is known as Freddie Mac’s Deputy Chief Economist. “The most important reduction in activity since 2006.”

“Redfin grows slowly in the downturn in housing, but it still grows and gains market share,” Kelman said.

“As before, the world will cancel us. The most painful thing is the effort that some people have to experience to think of themselves as good employers. Part is to accept our determination to do better when the company falls below it.

“We broke our commitment to our employees twice in three years,” Kelman added. “Today and every day, I can’t withdraw from doing the best for the whole company, not just part of the company. But for the rest of my life, how could I avoid these layoffs? I wonder if I will spend it. “

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https://www./utah/2022/6/14/23167763/housing-market-redfin-layoffs-demand-there-a-bubble-something-big-crash-compass Is the housing market changing? Redfin announces layoff

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