clear capitala real estate valuation technology firm and company, are laying off 27% of their staff in months after freezing mass hiring, TechCrunch has learned from sources.
A Clear Capital spokesperson confirmed the layoffs to TechCrunch, but did not share a specific number of employees affected. 1,400 employees worldwideusing that figure, the layoffs could have affected 378 employees.
The cuts primarily affected the operations team, according to sources.
Clear Capital CEO Duane Andrews said in a written statement to TechCrunch: “This will allow us to refocus our business on key areas and ensure we are on track for sustainable growth.
The CEO also cited “significantly lower transaction volumes from customers due to the impact of the rising interest rate environment in the mortgage industry” as the reason for the layoff.
The company did not explain what kind of severance pay was provided to its employees.
In an internal memo to employees obtained by TechCrunch, Andrews said Clear Capital executives expected a reduction in workload over the summer, but did not anticipate layoffs in the fall. explained.
“It was necessary to keep people engaged and contributing. Our projections showed an increase in transaction volume in the fall,” read Andrews’ note. “As we approach fall, the market indicates otherwise, and we know that volume won’t recover for quite some time.”
Andrews added that the decision to cut staff and locations is a “last resort” and that there is “no guarantee” that further cuts will not be made.
The employee was “out of the blue” having to join a Google Meet call at 9am PST on Wednesday, according to sources. Upon joining, they divided him into two groups. The remaining group and the dismissed group. According to sources, employees were told he had no layoffs in August.
The sources declined to comment on the record for fear of retaliation and said Clear Capital advised employees not to speak to the press.
Clear Capital’s vice president of customer success Heather Shick and senior vice president of customer experience Luke Fredrick told employees about the layoff and told the rest of the workforce about their “grit,” according to a transcript of the conference call obtained by TechCrunch. asked to feed
“Everything we planned with this was to make sure we never had to do the same thing again,” Shick said. Workloads change. you will be busier We are all going to be busier and harder. ”
Chic further explained that inflation in the real estate investment market led to the firm’s decision.
Inflation spiked after the COVID-19 pandemic, impacting the real estate space. As once-hot markets begin to freeze, rate hikes call into question whether there is a potential recession.
The Reno, Nevada-based company claims to be a “leader in real estate valuation management and data solutions” and acts as an intermediary for banks, investors and homeowners. The company last year bought Cubic Casa, a Finnish-based floorplanning app for iOS and Android with an undisclosed amount. Despite the company’s signs of growth, it is facing a decline in customer numbers, with Clear Capital citing macroeconomic conditions.
The dismissed employee was taken aback, explaining that the decision was unexpected. A source told TechCrunch they were “confused.”
During the conference, Clear Capital announced that it would be closing its Truckee, Calif. office and said it would not have operational staff in its Roseville, Calif. office. Those still employed are expected to return to in-person work on October 24.
Current and former Clear Capital employees can contact Andrew Mendez by email at [email protected] or through Signal, a secure, encrypted messaging app at 669-832-6800.