Real Estate Tech Firm Clear Capital Cuts 27% of Workforce Amid Housing Slump
Clear Capital lays off an estimated 378 employees as rising interest rates severely reduce mortgage industry volume. The company calls the restructuring a necessary response to a shifting housing market.
Clear Capital, a real estate valuation technology company, lays off 27% of its global staff just months after instituting a mass hiring freeze. Based on the company's reported 1,400 employees from last November, this reduction impacts an estimated 378 workers, with the operational team bearing the brunt of the cuts. A company spokesperson confirms the layoffs but declines to provide the exact number of affected employees.
CEO Duane Andrews attributes the restructuring to a significant decrease in customer volume caused by a rising interest rate environment in the mortgage industry. In an internal memo, Andrews reveals that executives originally anticipated a fall rebound in work volume but now realize that business will not return to normal levels for a significant period of time. He describes the decision to cut staff as a last resort and warns that there are no guarantees against future reductions.
The termination process unfolds abruptly during a mandatory 9 a.m. PST Google Meet call, where employees quickly find themselves sorted into groups of those staying and those losing their jobs. This sudden action directly contradicts assurances given to staff in August that no layoffs would occur, and sources report that the company advises employees not to speak to the press. Meanwhile, leadership asks the remaining staff to demonstrate "grit" as the company moves forward with its slimmed-down operations.