Real estate company Redfin this week became the latest major American corporation to announce both major layoffs and a contraction of its own business operations, further signs of turmoil in an economy increasingly marked by signs of recession.
The company said in a Wednesday email to staff that it would be enacting layoffs of 13% of its workforce and shuttering its RedfinNow real estate flipping venture, according to the Wall Street Journal.
CEO Glenn Kelman said in the email that the flipping initiative represented "a staggering amount of money and risk for a now-uncertain benefit," given faltering economic conditions.
“We’ve tied up hundreds of millions of dollars in houses that you yourself wouldn’t want to own right now," he said.
The 13% layoff comes after an 8% reduction in staff earlier this year.
The real estate market has been actively cooling in recent months after several years of white-hot activity driven by high demand and sharply constricted stock.