Purplebricks has confirmed rumours that it is laying off staff as part of a planned restructuring, with well-placed sources informing EYE that up to 15% of its workforce could lose their jobs.
Purplebricks currently employs 580 members of staff, and it is our understanding that the job cuts will see around 90 members of staff lose their jobs, with others already actively looking for new positions elsewhere in the sector.
The online estate agency continues to try and disrupt the housing market after announcing almost a year a go that customers could sell their homes for free as part of an operating model that replicates the one previously offered by Strike, which acquired Purplebricks 15 months ago backed by Freston Ventures.
But EYE understands that Strike has found the Purplebricks deal to be worse than expected, while there are growing concerns about the macro environment since Labour came to power, with increasing uncertainly in the economy and a Budget announcement that looks set to be bleak for businesses.
Purplebricks, which stopped trading on AIM in June of this year, has been trying to revive its fortunes under the new operating model.
However, despite a high-profile marketing campaign, including a media-for-equity investment from ITV with a value of up to £4.5m, the agency has been forced into making fresh redundancies.
A Purplebricks spokesperson told EYE: “Challenging the status quo is at the heart of Purplebricks. In the fifteen months since merging with Strike, the business has combined the strength of both brands, launched new products, and is currently the number one estate agency in the UK.
“As part of our transformation into a more agile, innovative business offering excellent customer service, we are currently in consultation with a number of colleagues as we continue to reshape the business. We recognise this is a difficult time for those impacted, and are providing support throughout this process and beyond.”
Due to market conditions!? 13% more sales ytd across the UK in 2024 than 2023. Surely this is just mis-management, another PB black hole for investors. Does the CEO still earn £260,000 per annum? Hmmmmm!
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Demonstrating what is already pretty obvious – you can’t sell houses for nowt and expect to turn a profit!
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If Purplebricks/Strike were an animal it would be taken away and put down to put it out of its misery once and for all !
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Seriously who is investing and running these large businesses?
‘ Strike has found the Purplebricks deal to be worse than expected’ Really! Strike should know given they invented a business that doesn’t charge anything.
It’s like going to a pub that offers a free pint in the hope you hope that you purchase some extras such as crisps, peanuts etc and enough of them to cover the costs of the pint plus the running of a very expensive business.
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