Roofstock, the Oakland, California-based company that provides technology for real estate investing and management, announced its second round of layoffs on May 13th. In the last year, the company had achieved a billion-dollar valuation, but now faces considerable challenges as the coronavirus pandemic continues to upset markets and economies worldwide.
As part of its second round of layoffs, Roofstock has cut 27% of its staff, including personnel from its corporate offices, leasing teams, and property management teams. This comes after the company’s first round of layoffs in March, when Roofstock had to reduce its workforce by 10%. In total, the company has reduced its staff size by 37%, with 33 employees laid off.
The company was founded in 2015 and quickly made its mark in the real estate sector, by providing technology and resources that allowed investors to buy and manage real estate online and without the use of an intermediary. Roofstock’s platform allowed users to buy, sell, and manage single-family residential renting opportunities from all across the United States.
In response to the pandemic, Roofstock has taken various steps to reduce expenses and conserve cash, such as cutting back on travel, office supplies, and marketing initiatives. CEO Gary Beasley said in a statement, “We continue to focus on ways to operate more efficiently and deliver more value to our customers,” and expressed optimism in the company’s position for the future.
Despite the pandemic-induced slump, Beasley insisted that Roofstock is “uniquely positioned to benefit from the trends that have been accelerated by this crisis.” With potential properties being able to be purchased and managed online, the company foresees an opportunity to capitalize on any potential growth in the industry after the economy improves.
In the meantime, Roofstock will not be issuing performance based bonuses to employees and has frozen any hiring plans. The company reviewed its entire staff and support structure, in accordance with the decrease in demand of its services, before deciding on its second round of layoffs. This round of layoffs is expected to save the company hundreds of thousands of dollars.
Roofstock’s second round of layoffs is certainly bittersweet for the company and for the many individuals affected by the layoffs. Nonetheless, the company’s focus on conserving cash during these difficult times and its commitment to a future of growth gives hope to its employees and investors.