Redfin announced that it will cut 470 jobs and compass decided to lay off 450 employees.

BENGALURU: Real estate brokers Redfin Corp and Compass Inc made an announcement on Tuesday saying that they have decided to cut jobs as rising mortgage rates and the prospect of aggressive rate hikes are affecting the demand in the real estate market.

Compass Inc decided that it will lay off 450 employees,10% of its current workforce, and Redfin will cut about 470 jobs, 6% of its total workforce.

Glenn Kelman, Redfin Chief Executive Officer mentioned in a blog “With May (homebuying) demand 17% below expectations, we don’t have enough work for our agents and support staff, and fewer sales leave us with less money for headquarters projects,”

Redfin said it is going to face years of lower home sales and the layoffs are a result of decline in revenues.

It’s a decade-long boom in housing prices from the United States to Europe. Asia is currently  facing its first real test as loan costs rise and high inflation affects household budgets.

Coinbase Global Inc also said earlier on Tuesday that it will cut off 1,100 jobs. Redfin and Compass are the latest real estate brokers to cut jobs after Coinbase Global Inc.

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