Seattle-based brokerage and portal Redfin laid off nearly 100 Redfin Concierge support and sales managers on Thursday. The company said agents will now take a leading role in concierge services.
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Redfin laid off about 100 employees on Thursday, according to a report from Redfin Geek line.
The layoffs affect support and sales managers at Redfin Concierge, the company’s pre-IPO home improvement service. A Redfin spokesperson said the layoffs come amid growing interest in Redfin Next, the company’s hybrid compensation plan that allows agents to retain comprehensive benefits while receiving a competitive commission split.
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“This morning, Redfin made targeted layoffs of just under 100 employees, primarily among our concierge and real estate brokerage support and sales managers,” a spokesperson told Inman. “No agents were laid off. In fact, some affected Impact employees are receiving agency job offers.
As for the concierge business, it is dominated by agents.
“As we hire more Redfin Next agents and our existing agents become more entrepreneurial and self-sufficient, Redfin will need fewer support and administrative staff,” they added. “Additionally, Redfin will need less support and management staff.” Decentralizing our concierge operations Redfin will continue to offer concierge services to sellers, but in a more decentralized format, spearheaded by local agents.
The Seattle-based brokerage made the layoffs in the wake of the stock market rally.
Redfin shares are up 30% in the past month on improving existing sales and mortgage rates, according to one company. market observation Analysis Monday. The Aug. 17 change in cooperative compensation rules also played a role, with Redfin CEO Glenn Kelman predicting that more consumers will accept the brokerage’s pricing structure in the face of a more complex commission environment.
“We’ve tried in the past to attract buyers by offering them better deals, but they were mostly confused by it because they weren’t the ones paying the agents. (Now) we think we can use price as a way to get Weapons of share,” Kelman said on the company’s second-quarter earnings call.
The layoffs don’t appear to have affected Redfin stock (NASDAQ: RDFN ), which was up 3.10% at $9.32 per share at the close. The company’s shares were still rising in after-hours trading, rising 0.75% to $9.39 per share.
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