Re/Max to cut 17% of its workforce

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Re/Max Holdings Inc. RMAX, +1.94% said late Thursday it expects to cut its workforce by about 17% by the end of the year, mostly technology positions, as the real-estate company outsources some of its technology needs. Re/Max said it is entering a relationship with Inside Real Estate, the developers of a cloud-based, “all-in-one” real-estate platform for agents. In a phased rollout beginning later this year through 2023, Re/Max affiliates in the U.S. and Canada will get access to the platform. Most savings from the layoffs are expected to reinvested back in the business, Re/Max said. According to company filings, Re/Max had 639 full-time employees at the end of last year, mostly in Denver. The company’s franchisees are independently operated and their employees and agents are not included in the company’s employee count. Shares of Re/Max were flat in the after-hours session after ending the regular trading day up 1.9%. This evolutionary step will advance the best elements of RE/MAX technology – including many developed via acquisitions in the past several years. Current offerings such as the First app and others will continue in their current form and eventually be integrated into or aligned with the kvCORE platform. Because the kvCORE platform includes an AI-powered smart CRM and customizable agent/team/office IDX websites, the booj products developed in-house the past few years are expected to sunset in mid-2023. As a result of this shift in strategy, the Company expects to reduce the size of its workforce by approximately 17% by the end of the year, with impacted positions primarily in technology. The majority of the expected savings from the reduction in workforce is anticipated to be reinvested back in the business. “Agents remain at the center of the real estate transaction and the best agents are enabled by powerful technology,” said Bailey. “RE/MAX is known as being the home of top producers. Technology has been and will continue to be foundational to our one-of-a-kind value proposition, which helps drive our industry-leading productivity. But technology is not a destination; it’s a journey. We are always striving to bolster our offerings and help our brokers, agents and teams reach their full potential.

This article was originally published by Marketwatch.com. Read the original article here.

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