Another major player in the real estate market is trimming payroll in response to waning housing demand.
Realtor.com this week cut an undisclosed number of regular and contracted employees across most of its departments, it revealed Thursday. The prominent listing service, based in Santa Clara, California, made the move in response to slowing sales volume, according to a Wednesday . to employees from CEO David Doctorow.
“While we remain bullish on the long-term potential of what is a $200 billion addressable market, we must always take prudent steps to drive improved efficiency, including now,” wrote Doctorow.
The business is providing impacted staffers “generous” severance and extended COBRA health benefits, Doctorow said. The news was first reported by Inman.
Over the quarter ending June 30, Realtor.com saw average monthly unique users to its web and mobile sites drop 13% compared to the same time last year, according to media conglomerate NewsCorp., which owns Realtor.com’s parent company Move Inc.
“Lead volume declined 39% in the quarter, reflecting continued deceleration in home sales and ongoing inventory constraints compared to historical trends across the industry,” the company wrote in its earnings report.
Other sites operated by Realtor.com include rental listing and services sites Doorsteps.com and Avail.co; real estate agent marketplace Upnest; and Moving.com. Realtor.com isn’t the first listing service to shed employees during the market’s downswing this year, although Redfin, Zillow and Compass offer brokerage services.
The pain at mortgage firms has continued to grow in recent weeks, with at least three companies shutting down wholesale operations and thousands of mortgage professionals at depositories and nonbanks losing their jobs. Wholesale leader Homepoint, a subsidiary of Home Point Financial, is letting go 913 employees in November, according to new Worker Adjustment and Retraining Notification filings in Arizona, Florida, Michigan and Texas.
Boca Raton, Florida-based Freedom Mortgage, one of the nation’s largest nonbank lenders, has undertaken four rounds of layoffs, most of which were in its wholesale channel, offshored other positions, according to HousingWire. The company hasn’t filed any WARN reports, and a spokesperson didn’t respond to requests for comment Thursday.