U.S. Crypto and Real Estate Firms Conduct Layoffs as Fed Primes to Raise Rates
Posted on 06/14/2022
U.S. mortgage rates have taken off since the start of 2022, rising from 3.29% in early January 2022 to 6.38% now, according to Mortgage News Daily. Real estate firm Compass plans to terminate around 10% of its U.S. workforce amid a U.S. housing slow down. Redfin announced an 8% cut in its employee base. Sonder Holdings Inc. manages short-term rentals, such as apartment hotels, in North America, Europe, and Dubai. Sonder, which went public via a Alec Gores-backed SPAC, is completing a restructuring of its operations which will result in an approximately 21% reduction of existing corporate roles and a 7% reduction of existing frontline roles.
North Carolina-based Wyndham Capital Mortgage will cut 48 staff at its main office in Charlotte effective August 1, 2022, while other mortgage lenders have been terminating staff. In April 2022, mortgage company Better.com conducted its third mass layoff in less than five months.
Crypto
Cryptocurrency exchange Coinbase will cut 18% of full-time jobs, according to an email sent to employees. Coinbase has roughly 5,000 full-time workers. “We appear to be entering a recession after a 10+ year economic boom,” Coinbase CEO Brian Armstrong says. “While it’s hard to predict the economy or the markets, we always plan for the worst so we can operate the business through any environment.”
BlockFi, Crypto.com, and other firms have announced layoffs.
Financial
The fintech startup incubator and holding company TIFIN terminated 21 U.S. employees.
Keywords: Federal Reserve System.
June 15, 2022 Correction: Earlier we had Tom Gores (which was incorrect), we changed it to reflect Alec Gore.