In October 2022, Side, a venture-backed white-label brokerage, confirmed a new round of layoffs. The San Francisco-based company, known for partnering with top residential dealmakers, did not disclose the number of employees affected or the exact timeframe. Citing "technology advancements" and the "macroeconomic climate," these layoffs come amidst a trend of residential firms cutting staff to prepare for a slower housing market. In this article, we'll discuss what happened, why it occurred, and the potential future impact of these layoffs on the industry.
Side's decision to implement layoffs was influenced by both technology advancements and the macroeconomic climate. The company's planned technology improvements increased efficiency, reducing the need for certain roles. Additionally, the broader economic environment has led to residential firms across the country cutting staff to prepare for a slower housing market.
Other brokerages, such as Anywhere Real Estate and Compass, have also recently laid off employees. A spokesperson for Side confirmed the layoffs but did not provide specific numbers.
The company expects to reduce costs and increase efficiency as a result of these changes. By focusing on technology advancements, Side may be better positioned to adapt to the evolving residential real estate market. The layoffs have not affected Side's product, engineering, or agent growth teams, suggesting that the company is still committed to its core offerings and growth strategy. As the industry continues to shift, Side's strategic adjustments may help it remain competitive and successful in the long term.
As Side and other residential firms lay off staff in response to technology advancements and a changing macroeconomic climate, the real estate industry may experience shifts in its dynamics. The focus on technology improvements could lead to increased efficiency and reduced costs for brokerages, potentially changing the way they operate and compete.
Furthermore, the anticipation of a slower housing market may result in more conservative growth strategies and a greater emphasis on cost management. While it is difficult to predict the exact impact of Side's layoffs on the industry, these changes could contribute to a more technology-driven and cost-conscious real estate landscape in the future.
Side's layoffs stem from technology advancements and a shifting macroeconomic climate, aiming to reduce costs and increase efficiency. These changes may affect the company's future and industry standing, as well as the broader real estate market. Emphasizing technology and cost management could lead to a more competitive landscape, with firms adopting conservative growth strategies. Side's actions may signal a shift towards a technology-driven, cost-conscious approach in the industry's future.
