Seattle-based real estate agency redfin tuna A new round of layoffs was implemented Thursday, a development first announced by geek line.
A Redfin spokesperson confirmed to the outlet that fewer than 100 employees were affected. The layoffs involve the company’s concierge service, which helps homeowners make their homes more attractive before listing them, as well as support staff and sales managers. Some affected employees are being offered agency jobs.
“As we hire more Redfin Next agents and our existing agents become more entrepreneurial and self-sufficient, Redfin will need less support and management staff,” a spokesperson told GeekWire. “In addition, Redfin is decentralizing our concierge operations.”
Amid a spate of commission lawsuits across the country over the past year, brokerage firms like Redfin have tweaked their compensation plans to retain existing agents and attract new ones.
The Redfin Next program, initially launched in October 2023, allows agents to earn up to 70% commission share on leads they generate themselves and up to 40% commission share on leads received through the Redfin website. These agents are W-2 employees and receive health insurance, 401(k) matching and other benefits. The brokerage has since expanded the program to several new markets, including an additional 25 markets this month.
This is at least the third round of significant layoffs at Redfin in recent years. Amid a rising interest rate environment, the company laid off 500 employees in June 2022 and an additional 200 employees in April 2023.
The company is in poor financial shape, reporting a loss of $27.9 million in the second quarter of 2024, slightly higher than the $27.4 million loss in the second quarter of 2023. Chief Executive Glenn Kelman said if mortgage rates don’t fall and home sales don’t increase, “Plan B is to drink our own urine or the blood of our competitors.”
