RE/MAX to reduce workforce by 7%
In an SEC filing, the company said the layoffs are part of a reorganization that will “yield cost savings in the long term.”
Key points:
- Affected employees were notified on Friday.
- The company also made changes to its accounting department, replacing its principal accounting officer.
- In a statement, RE/MAX noted the challenging headwinds in the real estate and mortgage sectors.
RE/MAX is reducing its workforce by 7% as the real estate company continues to navigate a very challenging real estate market.
In a filing with the SEC, RE/MAX said impacted employees were notified on Friday, Aug. 18, about the layoffs. It is part of a reorganization effort that is "intended to streamline the Company's operations and yield cost savings over the long term," according to the filing.
It is unclear how many employees received layoff notices. Last summer, the company laid off 17% of its employees, which was about 120 people. The current reorganization is expected to be substantially complete by the end of September.
In an email statement, the company said that given the current economic headwinds in real estate and the mortgage sectors, the company made the headcount reductions to streamline the organization.
"These measures are strategically designed so that we are better positioned to continue executing on growth initiatives for our networks and driving value for our stakeholders," according to the statement. "Growth of the RE/MAX and Motto Mortgage networks is a collective advantage, and our commitment remains steadfast in delivering a greater return for all. Though it is difficult to say goodbye to teammates, their contributions are greatly appreciated and they are leaving with our utmost gratitude and support."
The Denver-based company also made a key staffing change. According to the SEC filing, Adam Grosshams, who served as the company's principal accounting officer, had his contract terminated on Aug. 18. Leah Jenkins was promoted to serve as the company's principal accounting officer.
The reorganization is expected to incur a pre-tax charge of between $2.75 million and $3.25 million, which will be part of the third quarter earnings report.
The company did not comment beyond the statement it provided to Real Estate News.
In its previous workforce reduction in July 2022, the company focused on cutting positions in technology as it shifted some of its services to Inside Real Estate.
RE/MAX has more than 61,000 agents and does about $340 billion in annual sales.