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Clear Capital lays off 27% of its global workforce • londonbusinessblog.com

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Clear capitala tech and real estate valuation firm, is laying off 27% of its staff months after mass hiring freezes, londonbusinessblog.com has learned from sources.

A Clear Capital spokesperson confirmed the layoffs at londonbusinessblog.com, but did not share the specific number of employees affected. Last November, the company announced that they 1,400 employees worldwideso based on that figure, the layoff could have impacted 378 employees.

According to sources, the reduction mainly had consequences for the operational team.

“Clear Capital is restructuring all business divisions to reduce costs and support our future business strategy amid the current realities in the housing market,” said Duane Andrews, CEO of Clear Capital in a written statement to londonbusinessblog.com. “This will allow us to refocus the business in key areas and ensure we are on track for sustainable growth.

The CEO also cited “the impact of a rising interest rate environment in the mortgage sector has led to a significant decline in the volume of our clients” as the reason for the layoffs.

The company did not explain what type of severance pay, if any, was offered to employees.

In an internal memo sent to employees by londonbusinessblog.com, Andrews explained that Clear Capital executives had anticipated a drop in work volume over the summer, but did not expect to cut spending in the fall.

“Keeping people involved and contributing was necessary; our predictions showed that autumn would bring more volume,” read Andrews’ memo. “As we approached the fall, the markets indicated it was different, and we now know that the volume will not return for a significant period of time.”

Andrews added that the decision to cut staff and locations was “a last resort” and “there are no guarantees” that further cuts will not be made.

Sources explained that employees were required to attend an “abrupt” Google Meet call at 9 a.m. PST on Wednesday. Once inside, they were divided into two groups: those who would stay and those who were fired. Workers were told in August that there would be no layoffs, sources say.

Sources declined to comment on the record for fear of retaliation and because they said Clear Capital advised employees not to speak to the press.

According to a recording of a meeting obtained by londonbusinessblog.com, Heather Shick, Clear Capital’s Vice President of Customer Success, and Luke Fredrick, Executive Vice President of Customer Experience, addressed the layoffs and asked those who remained for their “grit.” ‘ to enter.

“All we planned to do with this was so we wouldn’t have to do it again,” said Shick, “Our goal is not to have this meeting a second time, but there’s no guarantee. Your workload is going to change. it’s getting busier, we’re all getting busier and that’s going to be difficult.”

Shick further explained in the call that inflation rates in the real estate investment market led to the company’s decision.

Inflation rates have risen dramatically after the COVID-19 pandemic and have had an impact on the real estate sector. With the once-hot market starting to freeze, the rate hike has raised the question of whether there will be a possible recession.

The Reno, Nevada-based company claims to be the “leader in real estate valuation management and data solutions,” and works as an intermediary for banks, investors and homeowners. Last year, the company purchased CubiCasa, a Finland-based floor planning app for iOS and Android for an undisclosed amount. Despite the company’s signs of growth, it faced declines in customer volume, on which Clear Capital cites macroeconomic conditions.

Dismissed employees explained that the decision was unexpected and surprised them. A source told londonbusinessblog.com that they are “feeling in a mess”.

At the meeting, Clear Capital announced it would close its Truckee, California office and said there will be no operations staff at its Roseville, California location. Those still in service are expected to return to work on October 24.

Current and former Clear Capital employees can contact Andrew Mendez by email at [email protected] or on Signal, a secure encrypted messaging app, at 669-832-6800.

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