The wave of layoffs continues as companies, including tech firms and others, grapple with the economic downturn. Better.com, an American company renowned for its online platform specializing in mortgage origination and related services, has recently announced a strategic move to halt its real estate operations. Consequently, the company has laid off its entire real estate team and shut down the division. This decision reflects the company's efforts to navigate through the current economic challenges by restructuring and downsizing its workforce.
Better.com, led by Founder and CEO Vishal Garg, has recently made a drastic move by shuttering its entire real estate unit and terminating its entire team, consisting of around 4,000 employees. The company's decision is primarily attributed to the highly uncertain conditions prevailing in the mortgage market, which have created an exceptionally challenging operating environment for businesses in the industry.
A recent report from TechCrunch has confirmed that Better.com carried out the termination of its real estate team on June 7. The company is said to be undergoing a transition from an in-house agent model to a partnership agent model. According to an employee affected by the layoffs, who spoke with the publication, the agents received either minimal or no severance packages. This comes after the employees had already experienced a significant salary reduction of more than 50% in November, which was implemented as a measure to safeguard their jobs.
The closure of Better.com's real estate business is not unexpected, considering the challenges the company has faced in the industry due to a notable slowdown caused by rising mortgage interest rates. As early as April, there were reports indicating that the company might undertake employee layoffs and potentially cease its operations in this sector.
Reddit, the well-known social media platform, has announced its intention to downsize its workforce by around 5 percent, impacting roughly 90 employees. The CEO of the company reportedly conveyed this decision via email to the affected employees. As per a Fortune report from Bloomberg, the CEO stated that the restructuring aims to leverage the successful performance witnessed in the first half of the year and sustain that progress throughout the second half and beyond.
Indian startups are also experiencing a notable wave of layoffs, mirroring the trend seen in global companies. Reports indicate that more than 27,000 employees have been laid off by Indian startups in the past year, and this unfortunate trend continues. The prevailing macroeconomic conditions have compelled these companies to resort to layoffs as they strive to navigate through the challenging economic landscape.
Recent reports reveal that in the first five months of this year alone, over 8,000 employees from nearly 50 startups in India have been impacted by job losses. This year has posed significant challenges for employees worldwide, with an estimated 200,000 individuals being laid off, spanning across both large tech firms and startups. The wave of layoffs has affected the job market across various sectors.
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