Clear Capital, a real estate valuation technology company, which has earlier frozen hiring, is laying off 27% of its staff this time. The company has confirmed the layoffs, which house an estimated 1,400 employees globally.
The 27% of the impacted staff are estimated to belong to the operational team, a TechCrunch report said.
Duane Andrews, CEO of Clear Capital said, "Clear Capital is restructuring all company divisions to reduce expenses and support our future business strategy amidst today’s housing market reality. This will allow us to refocus the business on key areas and ensure we are on track for sustainable growth." He also added that the impact of a rising interest rate environment in the mortgage industry has resulted in a significant decrease in volume from their customers, citing the reason for the latest move.
According to the report, the company has unveiled what kind of severance they would be offering to employees. The decision to cut staff and locations was “the last resort” and “there are no guarantees” that further cuts won’t be made.
As part of the announcement, employees were required to attend an “abrupt” Google Meet call at 9 a.m. PST on Wednesday. Once in, they were split into two groups: those that would remain and those laid off. Clear Capital’s Vice President of Customer Success Heather Shick and Executive Vice President of Customer Experience Luke Fredrick addressed the layoffs to employees and asked for those staying to feed into their “grit.”
“Everything that we planned on with this was so that we didn’t need to do it again. Our goal is to not have this meeting a second time, but there is no guarantee. Your workloads are going to change. You’re going to be busier. We are all going to be busier, and it’s going to be tough," said Shick.
Shick further explained in the call that inflation rates in the real estate investing market led to the company’s decision, the report added.
Employees laid off explained that the decision was unexpected and caught them by surprise. The 'layoff' winter and the rising inflation rates have knocked many firms out of the park when it comes to hiring and laying off employees.