RE/MAX Holdings will lay-off 7 percent of staff, according to a Securities and Exchange Commission filing reported by Inman. Based on the 594 employees reported in its most recent recent annual filing, the outlet estimated that more than 40 jobs will be eliminated.
The layoffs are expected to be completed by the end of September 2023, according to the SEC documents. It will result in between $2.75 million and $3.25 million for one-time termination benefits pre-tax.
In addressing the layoffs, a spokesperson for the company cited “current economic headwinds in the real estate and mortgage sectors.”
RE/MAX’s revenue fell 10.6 percent year-over-year in the second quarter, totaling $82.4 million. Net income, which was slightly on the negative side in the first quarter, jumped into the positive column by $2 million.
As the housing market has turned upside down in the past 18 months, many residential brokerages resorted to layoffs to keep themselves afloat. The wave of layoffs has largely trickled down to the occasional splash, however, as brokerages have hunkered down into a new normal.
My thoughts: I think we will see more layoffs and more agent leaving the industry before the end of 2023