HouseValues Inc. officials (NASDAQ: SOLD) on Wednesday announced that they are cutting 60 employees, or about 12 percent of the overall workforce, as the company exits the mortgage lead-generation business and pulls back in other areas.
In addition to leaving the mortgage lead-generation business, the company “is scaling back or eliminating initiatives that are not critical to its real estate agent customers. These reductions only affect the company’s Kirkland headquarters,” according to the announcement.
HouseValues offers marketing services and tools for real estate professionals and also operates a property-search Web site at HomePages.com.
The company has added Barry Allen as chief financial officer and executive vice president of operations, according to the announcement.
Clayton Lewis, HouseValues chief operating officer, has reportedly left the company to pursue other interests.
“HouseValues will work with strategic and advertising partners to monetize organic mortgage demand on its Web sites and will continue to facilitate cooperation between real estate agents and their mortgage partners. The company expects to record an impairment charge for mortgage-related assets no longer used in the business,” according to the announcement.
Ian Morris, CEO at HouseValues, said in a statement, “Today’s actions intensify HouseValues’ focus on the success of our real estate agent customers. Our goal is to extend HouseValues’ position as the leading partner to the nation’s most successful real estate agents.”
Allen previously served as CFO for Cendant Corp.’s online real estate business from 1999-2001, and he grew that organization’s revenue from $12 million to about $100 million in about two years, according to the announcement.
Jacqueline L. Davidson, who served as interim CFO at HouseValues, will serve as vice president of finance on Allen’s team.
HouseValues also announced the hiring of Peter Quinn as vice president of customer operations and the appointment of Scott Smith as vice president of customer advocacy.
HouseValues stock was trading at $5.24 per share by the close of the market Wednesday, up 8 cents from the previous day’s close.