Seattle-based brokerage and portal Redfin laid off nearly 100 Redfin Concierge assist and gross sales managers on Thursday. The corporate mentioned brokers will now take the lead on Concierge providers.
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Redfin laid off about 100 staff on Thursday, in line with a report from GeekWire.
The layoffs impacted assist and gross sales managers with Redfin Concierge, the corporate’s pre-listing house enchancment service. A Redfin spokesperson mentioned the layoffs have been spurred by an growing give attention to Redfin Subsequent, the corporate’s hybrid compensation plan that allows brokers to maintain full-scale advantages whereas incomes aggressive fee splits.
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“This morning Redfin had a targeted layoff of fewer than 100 people, primarily in our Concierge service and support and sales managers within the real estate brokerage,” a spokesperson advised Inman. “No agents are being laid off. In fact, some of the impacted employees are being offered jobs as agents.”
As for Concierge operations, brokers will take the lead.
“As we hire more Redfin Next agents and our current agents become more entrepreneurial and self-sufficient, Redfin needs less support and managerial staff,” they added. “Additionally, Redfin is decentralizing operations for our Concierge service. Redfin will continue to offer Concierge service for sellers but in a more decentralized form with local agents 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 present gross sales and mortgage charges, in line with a MarketWatch evaluation 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 in the past to recruit buyers by offering them a better deal, and mostly they’ve been confused by that because they haven’t been the ones paying their agent. (Now) we think we can use price as a weapon to gain share,” Kelman mentioned throughout the firm’s second-quarter earnings name.
The layoffs haven’t appeared to influence 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.
