RE/MAX lays off 7% of workers in reorg

Denver-based actual property large RE/MAX introduced that it was shedding 7% of its workers on Friday. In accordance with the corporate’s filing with the Securities and Alternate Fee, layoffs had been a part of a reorganization, which RE/MAX mentioned is “supposed to streamline the Firm’s operations and yield price financial savings over the long run.”

The submitting acknowledged that RE/MAX expects the reorganization to be considerably full by the top of the quarter. RE/MAX additionally famous that the reorganization will lead to a pre-tax money cost for one-time termination advantages between $2.75 million and $3.25 million.

In the identical submitting, RE/MAX introduced that it had let go of Adam Grosshans, the agency’s principal accounting officer, as a part of the reorganization. Leah Jenkins, who at present serves as govt director of economic reporting and technical accounting, was named vice chairman and chief accounting officer. She was additionally appointed as RE/MAX’s new principal accounting officer.

“These measures are strategically designed in order that we’re higher positioned to proceed executing on progress initiatives for our networks and driving worth for our stakeholders,” the corporate mentioned in a press release. “Progress of the RE/MAX and Motto Mortgage networks is a collective benefit, and our dedication stays steadfast in delivering a better return for all. Although it’s tough to say goodbye to teammates, their contributions are enormously appreciated and they’re leaving with our utmost gratitude and assist.”

RE/MAX laid off 17% of its staff, roughly 120 staff, a little bit over a yr in the past. The July 2022 layoff impacted know-how staff, together with operators of the booj platform, as RE/MAX shutdown booj previous to partnering with Inside Actual Property and its kvCORE platform.

Through the second quarter of 2023, RE/MAX recorded a ten.6% annual decline in income to $82.4 million, and a internet earnings of $2 million, down from $5.8 million a yr prior. The agency has additionally struggled to take care of its U.S. agent depend in latest months. In Q2 2023, U.S. agent depend was down 6.3% yr over yr, to 56,987 brokers.