Purplebricks ready to axe some 15% of workforce, it is reported
The agency's new owner Strike is said to be preparing to cut around 100 to 120 of its 695-strong workforce.
Purplebricks’ owner Strike is making plans to cut more than 100 jobs as part of a restructuring, Sky News reports.
A source close to the company said between 100-120 positions or 15% of the total Purplebricks workforce would be axed.
Strike purchased Purplebricks for £1 in May, and it left the AIM market in June.
New roles
A Purplebricks spokesman told Sky News: “This restructuring process will involve certain roles being made redundant as we shift to a scalable, lower-cost operating model following the sale to Strike.
“However, we have also proposed a significant number of new roles, specifically designed to enhance our specialised workforce focused on delivering an exceptional customer journey.”
Purplebricks has achieved number one market share nationally for three of the past six weeks.”
He added: “Since the acquisition by Strike, Purplebricks has seen an uptick in weekly instructions and has achieved number one market share nationally for three of the past six weeks.
“This consultation is about ensuring Purplebricks has the right operating model going forward, providing a solid foundation for continued success in the estate agency industry.”
Genuis strategy – continue to get rid of the very people who get vendors to sign up and pay upfront fees, the main income stream of the business. Add this to ‘lowering’ fees and you guessed it – even less income.
Basic business acumen seems to elude many CEO’s, maybe they should prove their business heads by answering the multiple choice question: If you want more revenue (not profit) do you – A Cut the cost of the service. B Cut the sales force. C – Do A and B. or D Realise this strategy can not drive more revenue, it purely cuts ‘people’ costs as a one off saving, soon outweighed by all annual figures showing dwindling MRR.
I look forward to their next ad, –
Purple Bricks sack their staff 10% faster!
You would expect a big market share of new instructions, the corporate agencies are on the instruction trail to keep boards and shareholders happy. The real agents will instructions and sell and have happy vendors, not upset vendors facing reduction after reduction and ridiculous ‘online auctions’
I’d have been surprised if instructions hasn’t increased, given the current market conditions. The issue is, selling them. I just hope that the company offers advice to vendors, not to test the market at prices over the recommended prices. That will lead to massive oversupply, owners selling for less later, and a market depression that will last a lot longer. Tough love is needed right now. The market isn’t going to miraculously recover unless ALL agents take control.