Redfin Lays Off Nearly 100 Redfin Concierge Service Workers
Seattle-based brokerage and portal Redfin laid off virtually 100 Redfin Concierge assist and gross sales managers on Thursday. The corporate mentioned brokers will now take the lead on Concierge companies.
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Redfin laid off about 100 staff on Thursday, based on a report from GeekWire.
The layoffs impacted assist and gross sales managers with Redfin Concierge, the corporate’s pre-listing residence enchancment service. A Redfin spokesperson mentioned the layoffs have been spurred by an rising give attention to Redfin Next, the corporate’s hybrid compensation plan that permits brokers to maintain full-scale advantages whereas incomes aggressive fee splits.
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“This morning Redfin had a focused layoff of fewer than 100 folks, primarily in our Concierge service and assist and gross sales managers inside the true property brokerage,” a spokesperson advised Inman. “No brokers are being laid off. In truth, a number of the impacted staff are being provided jobs as brokers.”
As for Concierge operations, brokers will take the lead.
“As we rent extra Redfin Subsequent brokers and our present brokers turn out to be extra entrepreneurial and self-sufficient, Redfin wants much less assist and managerial workers,” they added. “Moreover, Redfin is decentralizing operations for our Concierge service. Redfin will proceed to supply Concierge service for sellers however in a extra decentralized type with native brokers taking the lead.”
The layoffs come on the heels of a inventory market rally for the Seattle-based brokerage.
Redfin’s shares have risen 30 p.c over the previous month attributable to bettering current gross sales and mortgage charges, according to a MarketWatch analysis on Monday. The Aug. 17 change in cooperative compensation guidelines additionally contributed, as Redfin CEO Glenn Kelman predicted extra customers will embrace the brokerage’s pricing construction within the face of a extra difficult fee panorama.
“We’ve tried up to now to recruit patrons by providing them a greater deal, and largely they’ve been confused by that as a result of they haven’t been those paying their agent. (Now) we expect we are able to use value as a weapon to achieve share,” Kelman mentioned in the course of the firm’s second-quarter earnings name.
The layoffs haven’t appeared to impression Redfin inventory (NASDAQ: RDFN), which rose 3.10 p.c to $9.32 per share by market closing. The corporate’s inventory remains to be rising in after-hours buying and selling, rising 0.75 p.c to $9.39 per share.
