Redfin lays off staff, offers some of them jobs as agents
The company said fewer than 100 roles were affected, and it "needs less support and managerial staff" as more agents transition to Redfin Next.
This story originally appeared on GeekWire, which covers technology and business, including the real estate industry.
Redfin laid off employees on Wednesday, GeekWire has learned.
The Seattle-based company confirmed the cuts and said that fewer than 100 people were impacted.
The layoffs affected Redfin's Concierge service, which helps homeowners improve their home's appeal before putting it on the market.
Support and sales managers within the company's real estate brokerage were also impacted by the layoffs.
Some affected employees are being offered jobs as agents.
"As we hire more Redfin Next agents and our current agents become more entrepreneurial and self-sufficient, Redfin needs less support and managerial staff," a spokesperson said in a statement. "Additionally, Redfin is decentralizing operations for our Concierge service."
Redfin last year rolled out Redfin Next, a new compensation model for its agents that eliminated salaries and has expanded to more cities.
In 2022, responding to a housing market slowdown, Redfin laid off staff and ditched its iBuying program. It also laid off 4% of its workforce, or 201 employees, in April 2023.
Redfin shares rose this week after it issued a report showing that sales of existing homes rose 0.6% month-over-month in July.
Record-high home prices and a continued housing shortage have kept the housing market tepid. Even with mortgage rates dropping to a 15-month low recently, home sales haven't budged much.
Real estate industry changes from the National Association of Realtors settlement, including a substantial shift in the agent commission structure, went into effect this past weekend.
Redfin's second quarter revenue came in at $295.2 million, up 7% year-over-year, while net losses were $27.9 million, slightly higher than the year-ago period.