BrokerageIndustry News

Redfin blames economy in layoffs

Company plans service changes

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Real estate brokerage company Redfin has laid off about 20 percent of its employees, and CEO Glenn Kelman assured today that the downsizing has more to do with "drastic economic changes" than the company's business model. Kelman said there are 75 to 80 employees remaining at the company, which means the layoffs announced Tuesday morning affect up to 20 employees. The layoffs were effective immediately, and employees were all offered a severance package, Kelman said. "We sent a note out to every client that just indicated that some of our agents left the company and then introduced them to the partner agents," he said, noting that the company typically offers up a pair of agents to work with clients on every transaction. "We're definitely not pulling out of any markets now," Kelman said, though the company may delay its planned expansion into the Long Island, N.Y., market area. "I don't think this has been a repudiation of the entire busine...