Real estate brokers Compass and Redfin to cut jobs as housing market cools
Realtors Compass Inc. and Redfin Corp. said on Tuesday they would cut jobs as rising mortgage rates and the prospect of aggressive rate hikes eat away at home buying demand. Compass said it would lay off 450 employees, or about 10% of its current workforce, and Redfin would cut about 470 jobs, or about 6% of its total workforce.
“With May [homebuying] demand 17% below expectations, we don’t have enough work for our agents and support staff, and fewer sales leave us with less money for HQ projects,” Redfin’s chief executive wrote, Glenn Kelman, in a blog.
Redfin said he could face years, not months, of declining home sales and the layoffs were the result of lower incomes.
A decade of house price booms from the United States to Europe and Asia faces its first real test as borrowing costs rise and high inflation squeezes household budgets.
Redfin and Compass are the latest companies to cut jobs after Coinbase Global Inc. said earlier Tuesday it would cut 1,100 jobs, or 18% of its workforce.
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