Anywhere announces layoffs, wind-down of RealSure
The company disclosed in an SEC filing that it made workforce reductions Monday because of the downturn in the real estate market.
Key points:
- The latest round of job cuts follows layoffs last summer; workforce reductions since June total 11%.
- The company said it had a “meaningful workforce reduction” but did not disclose how many employees were terminated during this round of cuts.
- Anywhere said it was also “winding down” its RealSure program.
Anywhere Real Estate had more layoffs Monday after previously reducing its workforce in June 2022, the company disclosed in an SEC filing.
Citing "worsening trends in the housing market," the company said it "executed a meaningful workforce reduction." The company did not say how many staff members lost their jobs or the divisions affected, but acknowledged that the overall reductions since June amounted to 11% of the company's workforce.
"These actions build on the multiple other cost reduction and spending reprioritization initiatives previously disclosed by the company," Anywhere reported in the filing Tuesday with the Securities and Exchange Commission.
In a company-wide message to employees Tuesday morning, Ryan Schneider, Anywhere president and chief executive officer, said: "Yesterday we said goodbye to a number of our great people whose roles were eliminated."
Schneider continued: "While these decisions are never easy, I want you to know our priority is to support our departing team members… I realize the difficulty these actions have on the affected individuals, and I do not take any decisions involving our people lightly. We are grateful for their contributions to Anywhere and the time we've had together as colleagues, and we are focused on helping their transition as best we can."
Anywhere shared a copy of the message to employees with Real Estate News.
RealSure 'winding down'
Schneider also wrote that Anywhere is "winding down" RealSure, a homebuying program that allows sellers to receive a competitive cash offer from Anywhere after testing their home on the market for 45 days.
The decision was also part of Tuesday's filing with the Securities and Exchange Commission.
"To streamline and focus our strategic investments for today's environment, we are winding down a few select initiatives, including RealSure. While excited about the potential of RealSure, given the changing market, these products are not delivering the same value to consumers," Schneider wrote.
According to the SEC filing, Anywhere said it expects the cooler housing market to continue through the early part of 2023 before rebounding to a more moderate level.
"Recent industry forecasts predict significant declines in existing home sales in 2023," said the company, referring to forecasts by Fannie Mae and the Mortgage Bankers Association.
Anywhere reported home sales were off by 26% in October and 35% in November over the same month the previous year.
Anywhere said it will prioritize the consumer's real estate journey in 2023. The company plans to invest more in digital innovations, lead generation and franchisee support.
A big focus will be on digital services for consumers. "Delivering the company's business model more digitally is an increasing part of our improving the consumer experience and our ongoing cost focus," the company said.
In his message to staff, Schneider wrote that Anywhere is "reimagining our real estate brokerage offices to be more efficient, accessible, and integrated with transaction services, like title and mortgage, which means we can provide fewer but more impactful agent and consumer support hubs."