Realtor.com announces layoffs as industry cuts intensify
Another major player in the real estate market is cutting payrolls in response to falling demand for housing.
Realtor.com cut an undisclosed number of regular and contract employees in most of its departments this week, it disclosed Thursday. The prominent registration service, based in Santa Clara, Calif., made the move in response to slowdown in sales volumeaccording to an email sent Wednesday to employees by CEO David Doctorow.
“While we remain optimistic about the long-term potential of what is a $200 billion addressable market, we still need to take cautious steps to improve efficiency, including now,” Doctorow wrote.
The company is offering affected staff members a “generous” severance package and extended COBRA health benefits, Doctorow said. The news was first reported by Inman.
In the quarter ending June 30, Realtor.com saw the average monthly number of unique users on its web and mobile sites drop 13% from the same period last year, according to media conglomerate NewsCorp. , owner of Realtor.com’s parent company, Move Inc.
“Lead volume decreased 39% in the quarter, reflecting the continued deceleration in home sales and ongoing inventory constraints relative to historical industry trends,” the company wrote in its report on the results.
Other sites operated by Realtor.com include rental listings and service sites Doorsteps.com and Avail.co; the Upnest estate agent marketplace; and Moving.com. real estate agent.com is not the first registration service to lay off employees during the market downturn this year, although Redfin, Zillow and Compass offer brokerage services.
Mortgage company pain has continued to grow in recent weeks, with at least three companies closure of wholesale operations and thousands of mortgage professionals at depositories and non-bank lose their job. Wholesale leader Homepoint, a subsidiary of Home Point Financial, is laying off 913 employees in November, according to new worker adjustment and retraining notification filings in Arizona, Florida, Michigan and Texas.
Boca Raton, Fla.-based Freedom Mortgage, one of the nation’s largest non-bank lenders, undertook four rounds of layoffs, most of which involved its wholesale channel, relocated other positions, according to HousingWire. The company did not file a WARN report and a spokesperson did not respond to requests for comment Thursday.