Better.com Layoffs: What Happened & Why?

On March 8, 2022, Better.com laid off 3,000 employees, representing 33% of its workforce. This significant reduction has sent shockwaves through the company.

Headquartered in New York City, Better.com operates in the real estate industry. The layoffs come amid challenging market conditions and strategic restructuring efforts.

Why did Better.com have Layoffs?

Better.com decided to lay off 3,000 employees due to a significant drop in origination volume caused by rising interest rates and changes in the real estate market. The company is also adjusting to the Federal Reserve’s upcoming interest rate hikes, which have created headwinds in the residential real estate market.

• Drop in Origination Volume: The company experienced a dramatic decrease in origination volume due to rising interest rates.
• Market Adjustments: The layoffs were necessary to adapt to changes in the real estate market and the anticipated interest rate hikes by the Federal Reserve.
• Operational Streamlining: Better.com aimed to streamline its operations and reduce its workforce in response to challenging market conditions.

Company Statement

"Unfortunately, that means we must take the difficult step of streamlining our operations further and reducing our workforce in both the US and India in a substantial way," Ryan wrote. "This decision is driven heavily by the headwinds affecting the residential real estate market."

The statement from Better.com's interim president, Kevin Ryan, highlights the challenging market conditions that have necessitated these layoffs. The company is facing significant headwinds in the residential real estate market, primarily due to rising interest rates and a dramatic drop in origination volume. These factors have forced Better.com to make tough decisions to ensure its long-term viability.

Impact on Workforce and Industry

The layoffs at Better.com have significantly impacted its workforce, with 3,000 employees losing their jobs. This reduction has affected various roles and departments, including customer service and loan processing, leading to operational challenges and potential delays in service delivery.

In the broader real estate and mortgage industry, other companies have also announced layoffs recently. For instance, Zillow and Redfin have both reduced their workforce in response to similar market pressures and rising interest rates.

Looking Ahead

The layoffs at Better.com indicate a period of significant restructuring and adaptation to market conditions. The company is now focused on strategic initiatives to stabilize and grow in a challenging environment.

• Focus on Core Operations: Better.com plans to streamline its core operations to enhance efficiency and reduce costs.
• Investment in Technology: The company aims to invest in advanced technology to improve customer experience and operational effectiveness.
• Exploring New Markets: Better.com is looking to expand into new markets to diversify its revenue streams and mitigate risks associated with the current market.

Get Started with Sunset Today!

Sunset helps startups wind down by handling all legal, tax, and operational burdens, allowing founders to avoid penalties, reduce liabilities, and move on quickly. For personalized guidance and support, contact us to schedule a consultation or learn more. Sign up today and try it out!