{"id":4924,"date":"2008-10-13T13:05:36","date_gmt":"2008-10-13T20:05:36","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4924"},"modified":"2008-10-13T13:05:39","modified_gmt":"2008-10-13T20:05:39","slug":"citing-market-downturn-redfincom-cuts-headcount-by-twenty-heads","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4924\/citing-market-downturn-redfincom-cuts-headcount-by-twenty-heads\/","title":{"rendered":"Citing market downturn, Redfin.com cuts headcount by twenty heads"},"content":{"rendered":"

Via intrepid startup blogger John Cook from his new weblog Where are John and Todd?:<\/em><\/a><\/p>\n

Redfin today said it is cutting 20 percent of its staff as the Seattle online real estate broker prepares for what Chief Executive Glenn Kelman described as a “big dip.”<\/p>\n

About 20 employees were let go, bringing total staff at the company to about 75 people.<\/p>\n

Kelman said it was a difficult decision, but the right move given how the economic slow down is impacting the residential real estate market.<\/p>\n

“Redfin’s whole business will struggle and fight and may yet fail,” Kelman wrote in a message to employees. “But the only way it is possible for us to succeed – and, even today, I believe we will – is if we adapt.”<\/p>\n

In an interview, Kelman said that the company had been performing well up until about three weeks ago. Last month, he said executives even felt strong enough about the business to raise revenue projections for next year.<\/p>\n

But once the economic meltdown hit Wall Street, Kelman said “deals started to fall apart.” And while October and November may still prove to be solid months at Redfin, Kelman said beyond that the outlook is dismal.<\/p>\n

“As the stock market wiped out prospective down-payments, tours and offers dropped 30 percent,” said Kelman in his message to employees. “Transactions that were done came undone.”<\/p><\/blockquote>\n

More from CEO Glenn Kelman at Redfin’s weblog:<\/a><\/p>\n

Today Redfin laid off roughly 20% of our employees.<\/p>\n

Unlike other startups, our industry’s recession started a year ago, when home prices first plunged.<\/p>\n

Since then, we’ve fought like starving animals, and with some success: while industry-wide transaction volumes dropped 33%, we grew revenues by nearly 50%. Traffic grew more than 300%.<\/p>\n

Even a month ago, we were raising 2009 revenue projections. All our markets, now including Chicago, contributed profits.<\/p>\n

But the past few weeks have seen a major reversal. As the stock market wiped out prospective down-payments, tours and offers dropped 30%. Transactions that were done came undone. October will still be pretty good, then we’re headed for a big dip.<\/p>\n

Hence the layoff. Layoffs are painful for any company, but especially for a startup and especially, I Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Via intrepid startup blogger John Cook from his new weblog Where are John and Todd?: Redfin today said it is cutting 20 percent of its staff as the Seattle online real estate broker prepares for what Chief Executive Glenn Kelman described as a “big dip.” About 20 employees were let go, bringing total staff at […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,6,5,27,19],"tags":[],"class_list":{"0":"post-4924","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-disintermediation","7":"category-marketing","8":"category-real-estate","9":"category-redfincom","10":"category-technology","12":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":6907,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6907\/video-clips-of-redfincom-ceo-glenn-kelman-from-the-bloodhoundblog-unchained-preview-event-in-seattle\/","url_meta":{"origin":4924,"position":0},"title":"Video clips of Redfin.com CEO Glenn Kelman from the BloodhoundBlog Unchained preview event in Seattle","author":"Greg Swann","date":"February 15, 2009","format":false,"excerpt":"Marlow Harris of 360Digest.com took these clips of Redfin's Glenn Kelman as he spoke with us Thursday afternoon at Zillow.com headquarters in Seattle: Technorati Tags: BloodhoundBlog Unchained, disintermediation, real estate, real estate marketing, Redfin.com","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3154,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3154\/what-happens-when-a-lion-of-the-industry-sticks-his-head-in-the-lions-own-mouth-glenn-kelman-joins-bloodhoundblog-as-a-contributor\/","url_meta":{"origin":4924,"position":1},"title":"What happens when a lion of the industry sticks his head in the lion’s own mouth? Glenn Kelman joins BloodhoundBlog as a contributor","author":"Greg Swann","date":"May 21, 2008","format":false,"excerpt":"This is one of those completely obvious ideas that only takes about a year to bubble up to the surface: We write about the real estate industry. We are not very shy about advocating change in the real estate industry. Redfin.com CEO Glenn Kelman is one of the key exponents\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":290,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/290\/dissecting-glenn-kelman-of-redfincom\/","url_meta":{"origin":4924,"position":2},"title":"Dissecting Glenn Kelman of Redfin.com . . .","author":"Greg Swann","date":"September 5, 2006","format":false,"excerpt":"From comments at Rain City Guide. I didn't address this weblog entry from Redfin.com CEO and broker Glenn Kelman because I wasn't sure how to strike a balance. But today, Dustin Luther offered this:For those that haven't seen Glenn's comments on his blog, I highly recommend heading over to this\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1031,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1031\/redfincoms-ceo-glenn-kelman-what-if-the-parasites-had-to-eat-the-parasites\/","url_meta":{"origin":4924,"position":3},"title":"Redfin.com’s CEO Glenn Kelman: “What if the parasites had to eat the parasites?”","author":"Greg Swann","date":"February 10, 2007","format":false,"excerpt":"It's been a Redfin week for us. Kris Berg recorded her podcast with Glenn Kelman last week and I spent much of my spare time this week dealing with it. Allen Butler dealt with the audio quality, and then Cathleen and I went through the recording, pulling out apposite quotes\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1069,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1069\/redfincoms-glenn-kelman-issues-a-non-apology-apology-this-is-what-it-sounds-like-when-pigs-fly\/","url_meta":{"origin":4924,"position":4},"title":"Redfin.com’s Glenn Kelman issues a non-apology apology: This is what it sounds like when pigs fly . . .","author":"Greg Swann","date":"February 23, 2007","format":false,"excerpt":"Oh, good grief... If Redfin.com wants to make peace with the real estate industry, all it has to do is hold up its end. If it wants to be a cowbird bottom-feeding parasite -- defaulting on its responsibilities and disbursing that default as \"savings\" -- it has to live with\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1473,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1473\/could-anything-be-sleazier-than-redfin-ceo-glenn-kelman-how-about-the-tennessee-association-of-realtors\/","url_meta":{"origin":4924,"position":5},"title":"Could anything be sleazier than Redfin CEO Glenn Kelman? How about the Tennessee Association of Realtors?","author":"Greg Swann","date":"May 25, 2007","format":false,"excerpt":"The Tennessee State Legislature is trying to outlaw real estate commission rebates -- guess at whose behest? Little Pink Houses has the dirt. Jonathan Dalton has the dudgeon. 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