Redfin and Compass lay off hundreds of workers as housing market cools, inflation spikes

[All_is_well]

• Redfin lets go of about 470 workers or 6% of its staff.
• Compass is releasing about 450 workers, equaling 10% of its staff.
• Both companies saw its stock drop ranging from 5% to 10%.

Anticipating home sales cooling nationwide and rising interest rates, two renowned real estate firms laid off hundreds of workers Tuesday. 

Property technology companies Redfin and Compass announced the layoffs that total more than 900 staffers in separate announcements.

In a blog post, Redfin CEO Glenn Kelman said his company is laying off about 470 employees, about 6% of its workforce after the demand in May came in 17% below expectations.

"We raised hundreds of millions of dollars so we wouldn’t have to shed people after just a few months of uncertainty," Kelman said. "But mortgage rates increased faster than at any point in history. We could be facing years, not months, of fewer home sales, and Redfin still plans to thrive. If falling from $97 per share to $8 doesn’t put a company through heck, I don’t know what does."

Meanwhile, Compass confirmed to USA TODAY in an email the firm is letting go of about 450 people, equating to 10% of its staff.