The residential brokerage Compass conducted its third round of layoffs in early January, a move that impacted approximately 350 employees, according to a SEC filing reviewed by Insider. The layoffs come just weeks after Rob Greyber took over as CEO. wpcf7Elm.addEventListener( 'wpcf7submit', function( event ) { var para = document.createElement("p"); according to the Phoenix Business Journal. The hot housing market that has been expanding since the start of the pandemic also pushed the number of real estate agents in the U.S. to a record high, according to the National Association of . Anywheres next earnings call is scheduled for February. "Although we recognized these macroeconomic challenges in late summer 2022 and took steps to substantially reduce our cost structure in response, it unfortunately was not enough," Kyle Zink, Divvy's VP of Marketing, told Insider. Earlier this week, two of the nation's biggest names in real estate announced significant layoffs, saying the drastic move was due to the . The companies with layoffs are listed below in alphabetical order. Well, this morning New Jersey-based real estate brokerage, Anywhere Real Estate, announced it made a meaningful reduction to its workforce on Monday. Clear Capital, a real estate appraisal technology company, laid off 27% of its workforce on October 14, according to Layoffs Tracker and LinkedIn posts from former employees. Despite the round of layoffs, the company's staffing total will still likely be 20% above last year's, he added. If accepted, the buyouts are expected to save Rocket about $180 million per year, executives said on a first quarter earnings call in May. The mortgage arm of the major brokerage Keller Williams, Keller Mortgage, laid off 150 new hires in October, then laid off many more employees in May, a round that former employees described as "big," "massive," and "huge," according to The Real Deal. Sprout Mortgage, which touted itself as the largest originator of nonqualified mortgages, laid off all of its more than 300 workers and shut down operations earlier this month, as HousingWire first reported. Delivering the companys business model more digitally is an increasing part of our improving the consumer experience and our ongoing cost focus.. We believe that industry dynamics and customer demands will require simplified and more integrated and digitized offerings, systems and support, Anywhere said in Tuesdays filing. These cookies will be stored in your browser only with your consent. The Mortgage Bankers Association the industry's largest trade group anticipates an attrition rate as high as 30%, according to a spokesperson. When I joined Realogy in 2019, the balance sheet was a little bit daunting and there were two big walls of debt that were coming due in 2023 and 2025, Anywhere CFO Charlotte Simonelli said at the companys investor day earlier this year. by Patrick Regan. The round of layoffs account for approximately 13% of its workforce, and brings the company's total cuts for the year up to 159, according to Layoff Tracker. Join the conversation Cancel reply Cancel reply. The real estate giant announced in a Tuesday SEC filing that it would implement meaningful workforce reductions while also sunsetting its iBuying brand, RealSure. It seems like everyone is getting out of iBuying these days. MADISON, N.J., Dec. 15, 2022 /PRNewswire/ -- Anywhere Real Estate Inc. (NYSE: HOUS), a global leader in residential real estate services (formerly known as Realogy Holdings Corp.), today announced . Site by. While these decisions are never easy, I want you to know our priority is to support our departing team members, Schneider wrote. At least thats the case for Anywhere Real Estate, which recently announced that its exiting instant buying and implementing another wave of layoffs amid difficult economic and housing market conditions. The company, which owns major brokerages such as Corcoran, Coldwell Banker, Century 21 and Sotheby's, rebranded in May. Read Todays Top Story: Miami projected to be one of the hottest U.S. housing markets of 2023. Anywhere Real Estate has laid off an unknown number of employees as the company streamlines amid choppy market conditions. The company cited rising interest rates and a bad market for raising capital as the primary reasons for the shutdown. The company blamed economic headwinds and rising interest rates, according to a report by GeekWire. Try again later. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. It is mandatory to procure user consent prior to running these cookies on your website. Anywhere is just the latest real estate firm to undergo layoffs this summer. The company also said it is ending its iBuying business, RealSure, following in the footsteps of Zillow and Redfin. FlyHomes, an online brokerage service, cut 40% of its staff, or about 300 people, in November as the company seeks to "preserve capital through uncertain economic conditions," according to a LinkedIn post from the company. Anywhere Real Estate Inc. (formerly known as Realogy Holdings Corp.), has unveiled the company's newly renovated headquarters. We must continue to make proactive moves to ensure Anywhere can successfully navigate a more difficult current and upcoming housing environment., In the email, Schneider addressed the layoffs. }, false ); All rights reserved 2023 The Real Deal is a registered Trademark of Korangy Publishing Inc. It was already trimming staff over the summer, when about 25 salespeople received pink slips. Jobs. Anywhere has been trying to weather the market changes like many in the industry. Anywhere posted a 17% decline in revenue in the third quarter of 2022, as company executives acknowledged the deteriorating housing markets strain on its performance in recent quarters. The move comes after the company laid off 6% of its staff of almost 6,500 in June. Divvy Homes, a rent-to-own real estate company, in September laid off 40 employees, representing more than 12% of its workforce, according to Layoff Tracker. Anywhere Real Estate had more layoffs Monday after previously reducing its workforce in June 2022, the company disclosed in an SEC filing. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Convene, a hospitality and co-working company based in Manhattan, laid off 54 employees on December 10, according to commercial real estate publication Bisnow. Anywhere Real Estate Inc. instituted layoffs to some of its workforce this week, the company announced in an SEC filing Tuesday. On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. Commercial real estate brokerage JLL laid off employees from its New York and Chicago offices in November, but it remains unclear how many employees were impacted, Bisnow reported, citing multiple sources. Layoffs Roundup: Fri 11/6/20. Get the latest real estate news delivered to your inbox. Most housing economists expect a depressed market in the winter and spring, with inventory levels expected to remain low and mortgage rates to remain elevated. "The discontinuation of the forward mortgage originations segment will allow FOA to optimize its resources and prioritize businesses that have a distinct market opportunity and greater growth potential," FOA Interim CEO Graham Fleming said in a press release. In an 8K report filed with the Securities and Exchange Commission, Anywhere said the layoff was "driven by worsening trends in the housing market.". In the first quarter of 2022, the company's mortgage originations were down 40% from the first quarter of 2021. Real Estate Marketing The Complete Guide To Survive and Thrive in 2023; Best Practices Learn and get certified on the fundamentals of real estate; Assistants Anywhere-Real-Estate-2. According to the LinkedIn post of a former Anywhere employee affected by the most recent round of layoffs, a number of Talent Acquisition and Human Resources were affected. RealTrends Emerging Leaders Award is now part of HousingWires Rising Stars! The company has a proven track record of succeeding through both good and tough times, he said. This category only includes cookies that ensures basic functionalities and security features of the website. It then offered more generous commission splits, and by the third quarter of 2017 was paying $53 million more to its brokers. Life. Since opening its doors in 2014, the proptech startup has raised more than $108 million from investors that include Ribbit Capital, Zigg Capital, and Ovo Fund. Anywhere Real Estate Inc. HOUS: Raising target price to $6.00 ANYWHERE REAL ESTATE INC has an Investment Rating of SELL; a target price of $6.000000; an Industry Subrating of Medium; a. "This week, we have made the difficult but necessary decision to eliminate a small number of roles and will shift those resources to key growth areas around our housing super-app. Let me start with the hardest but most important thing: our people. The Real Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry. Anywhere announces layoffs, wind-down of RealSure The company disclosed in an SEC filing that it made workforce reductions Monday because of the downturn in the real estate market. Indeed, home builders have reported experiencing a notable decline in orders as high lending rates price out many would-be homebuyers. We are grateful for their contributions to Anywhere and the time weve had together as colleagues, and we are focused on helping their transition as best we can.. Recent industry forecasts predict significant declines in existing home sales in 2023, said the company, referring to forecasts by Fannie Mae and the Mortgage Bankers Association. Israeli proptech startup Anywell, a company that creates hybrid workspaces, announced in August that it will lay off 50% of its workforce in a restructuring. All content is posted anonymously by employees working at Real Estate From Anywhere. It is unclear how many employees were cut. Brokerage conglomerate's headcount is down 11% since June 30. Orchard, a startup that helps homeowners buy a home before selling their current home, laid off 180 people, or about 25% of its workforce, on November 17 at a time when homebuyers were increasingly leaving the real estate market, according to Layoffs Tracker. David Doctorow, the company's CEO, cited slow sales volume and economic headwinds as catalysts for the downsizing, according to Inman.com. The layoffs primarily impacted employees in Zillow Offers, its sales team, and staff at Zillow Home Loans, the company's mortgage lending arm. RealTrends Emerging Leaders Award is now part of HousingWires Rising Stars! The division is largely focused on purchase mortgages because of its relationship with the brokerage. January 10, 2023, 10:59 am By James Kleimann. By clicking Sign up, you agree to receive marketing emails from Insider The company that was founded by Audrey Gelman and Lauren Kassan in 2016 raised more than $117.5 million in funding from investors such as WeWork and Sequoia Capital. REAL NEWS, REAL DEALS DELIVERED DIRECTLY TO YOU. The layoffs. Its net debt leverage ratio, defined as net debt divided by adjusted EBITDA, was 3.9 in quarter two of 2017. Indeed, in November 2022, total existing-home sales fell 35% from the same time last year. Deals that were once profitable for the industry and home purchases that had been affordable for everyday people have been getting slammed by or because of the higher borrowing costs. Compass previously announced it laid off 10% of its workforce about 450 employees in June as residential transactions slowed down. Reology, by comparison (now known as Anywhere Real Estate ), which owns Corcoran, Sotheby's, and Coldwell Banker, among others, reported $23 million in profits in the first quarter of 2022.. In December 2022, Anywheres closed homesale sides overall dropped 41% compared to December 2021. We also use third-party cookies that help us analyze and understand how you use this website. Anywhere said in the filing that it will give more details about the layoffs during its full year 2022 earnings call in Feburary 2023. We are grateful for their contributions to Anywhere and the time weve had together as colleagues, and we are focused on helping their transition as best we can.. Ribbon has raised more than $900 million since it was founded in 2017. See jobs Follow. ET Anywhere Real Estate disclosed 9,665 full-time employees and 165 part-time. Anywhere's staff cuts come days after Compass took similar measures with a wave of layoffs of its own. By May 2019, the firms market cap had fallen below $1 billion, down from a peak of $7 billion in 2013. I realize the difficulty these actions have on the affected individuals, and I do not take any decisions involving our people lightly, he wrote in his memo. Its no secret housing has been in something of a contractionary phase for most of the past year. email anicoll@insider.com or rdavis@insider.com. Anywhere did a round of layoffs in August. With signs of distress spreading through the office market and among homebuilders, and rate hikes anticipated well into 2023, layoffs are mounting. The move impacted 11 employees, primarily from Anywell's operational staff. Sonder, one of the multiple proptech companies to go public during a rush of SPAC deals, laid off 21% of its corporate employees and 7% of its frontline hospitality staff in June, Business Travel News reported. It was valued at $1 billion after a $100 million funding round led by Accomplice. Overall, employment at the company has declined by 27% since April 30, the memo said. San Francisco-based startup Kiavi, which offers loans to real estate investors, has felt the impact of rising interest rates on its customers. Anywhere Real Estate Inc., formerly Realogy ( / rildi / ), is an American publicly owned real estate services company. The company disclosed in an SEC filing that it made workforce reductions Monday because of the downturn in the real estate market. But the rosy figures didnt stop it from simultaneously playing defense. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Anywhere Real Estate Inc. (NYSE: HOUS) is moving the real estate industry to what's next. Illustrated Properties promotes Amanda Fell to director of operations, How extreme weather is changing real estate nationwide and in Miami, The Complete Guide To Survive and Thrive in 2023, Learn and get certified on the fundamentals of real estate, Train and certify your assistant for success. Phoenix, Arizona-based mortgage lending company Homepoint laid off 117 employees on November 17 as rising interest rates took a toll on homebuyer demand, according to the Phoenix Business Journal. A spokesperson confirmed that the company underwent layoffs last Thursday, but the number of impacted employees and their departments was not disclosed. Anywhere Real Estate Inc. (HOUS) is priced at $7.86 after the most recent trading session. Dear MULN Stock Fans, Brace Yourself for a Reverse Stock Split, Why AMTD Digital (HKD) Stock Keeps Climbing After Lock-Up Period Expires. As part of itscost cutting efforts, Anywhere executives on the third quarter earnings call said the firm has been evaluating its agent commission split structure. Anywhere shared a copy of the message to employees with Real Estate News. This website uses cookies to improve your experience while you navigate through the website. While these decisions are never easy, I want you to know our priority is to support our departing team members. He said laid off employees will receive severance packages and outplacement career services. A leader of integrated residential real estate services in the U.S., Anywhere includes. The company revealed it has cut 11% of its workforce since June, alongside several other major realty businesses. The layoffs come approximately 18 months after the startup cut more than 60% of its labor force due to business impacts resulting from COVID. MULN Stock Alert: Why Are Investors Suing Mullen Automotive? 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