Redfin announced another round of layoffs and the end of its iBuying, according to a blog post on its website.
- Redfin announced they would be laying off 862 employees, or roughly 13% of its staff, which puts the total employment at the company down 29% since April.
- The company also announced the elimination of 218 positions however those employees can choose over the next few days to stay at Redfin in another role.
iBuying Done. Redfin also announced the shuttering of its iBuying program known as RedfinNow. The company said in its post “Even before its overhead expenses, the RedfinNow properties segment will likely lose $22 – $26 million dollars in 2022. However small our iBuying loss may be compared to others, that loss is still larger than we could afford to bear again.”
Shrinking Market. Redfin said it plans to keep growing its market share but that the housing market itself is expected to shrink. “We plan to keep increasing our share of the market, but that market in 2023 is likely to be 30% smaller than it was in 2021. The June layoff was a response to our expectation that we’d sell fewer houses in 2022; this layoff assumes the downturn will last at least through 2023.”