The layoffs are part of a reorganization plan that will streamline operations and bring cost savings in the long term, the real estate franchisor said in Securities and Exchange Commission filings.
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RE/MAX Holdings, franchisor of the RE/MAX real estate brand, is laying off approximately 7 percent of its staff, the company acknowledged in newly filed Securities and Exchange Commission documents submitted Friday.
The layoffs were part of a company reorganization meant to “streamline the Company’s operations and yield cost savings over the long term,” the company said in a 8-K filing with the SEC. The reorganization is expected to be completed by late September and yield a pre-tax cash charge for one-time termination benefits between $2.75 million and $3.25 million, a RE/MAX spokesperson said.
In its most recent annual filing submitted earlier this year, RE/MAX Holdings reported an employee count of 594 employees, meaning this round of layoffs would add up to about 40 or so employees.
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In its SEC filing, RE/MAX said it had let go of Adam Grosshans, the brokerage’s principal accounting officer. Leah Jenkins, RE/MAX Holdings’ executive director of financial reporting and technical accounting, was named vice president and chief accounting officer, as well as principal accounting officer.
“Given the current economic headwinds in the real estate and mortgage sectors, RE/MAX Holdings, Inc. has made operational adjustments and headcount reductions to streamline the organization,” the RE/MAX spokesperson said.
“These measures are strategically designed so that we are better positioned to continue executing on growth initiatives for our networks and driving value for our stakeholders,” the statement continued. “Growth of the RE/MAX and Motto Mortgage networks is a collective advantage, and our commitment remains steadfast in delivering a greater return for all. Though it is difficult to say goodbye to teammates, their contributions are greatly appreciated and they are leaving with our utmost gratitude and support.”
In July 2022, RE/MAX laid off 17 percent of staff, or about 120 employees, and announced its shuttering of the booj platform. The company then went on to establish a new partnership with Inside Real Estate and implemented its kvCORE platform.
In the second quarter of 2023, RE/MAX’s total revenue dropped by 10.6 percent on an annual basis to $82.4 million, while net income inched up to $2 million from the $700,000 loss the company posted during the first quarter.
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