\n<\/p>\n
Real estate valuation technology company Clear Capital<\/strong> has conducted a new round of layoffs as part of a company restructuring plan. The firm announced on Wednesday that it was eliminating about 24% of its workforce, or over 250 jobs, as it restructures departments and consolidates teams amid a tough housing market.\u00a0\u00a0<\/p>\n Per the firm, this round of layoffs will include cuts to some leadership and managerial roles.<\/p>\n \u201cWe are consolidating different teams, so there’ll be some leadership roles eliminated because of redundancy,\u201d Clear Capital CEO Duane Andrews said in an interview with HousingWire. \u201cFolding up departments makes sense when volumes are so low that you can’t sustain as many managerial positions at that point. So, we did that in a way that really makes sense for our business.\u201d <\/p>\n Employees were notified on Wednesday morning about the workforce reductions. Those who were affected by the layoffs will receive severance packages and outplacement services to help with the transition, Clear Capital said.<\/p>\n This is the second round of layoffs<\/a> conducted by Clear Capital in recent months. The firm reduced its workforce by about 27%, or about 350 positions, in October following a slowdown in the housing market. <\/p>\n According to Andrews, the goal of restructuring is to help the company weather the current industry headwinds and prepare for where the market will be<\/a> over the longer term. <\/p>\n \u201cThis reduction in force is really a restructuring of our company as opposed to a right-sizing of the company \u2014 a fundamental restructuring of our company to meet the market where it is today, and to be where it’s going to be in the future,\u201d Andrews said.<\/p>\n Following this round of workforce reductions, Clear Capital’s total employee headcount will be about 800, according to the firm. The firm had about 1,400 employees at the end of 2021.<\/p>\n \u201cWe looked at this as not just an adjustment to the current market climate, but also looking at the current shift that’s happening in the valuation industry. We’ve been a company that’s been investing very heavily in bringing data analytics and technology into the valuation space. We’ve been very involved in appraisal modernization [and] investment over the past five years,\u201d Kenon Chen, EVP of corporate strategy at Clear Capital, said. <\/p>\n \u201cWe’re using this as an opportunity to restructure our company in a way that we think will allow these programs to be adopted and be successful moving forward.\u201d<\/p>\n Chen said that the company took a holistic approach to the restructuring, and that in addition to the layoffs, the executive team will take a 10% pay cut at minimum.<\/p>\n \u201cWe don\u2019t take for granted the impact that this has on people, the impact to their families and to their careers. We don\u2019t take any of those things lightly,\u201d Chen said. \u201cThis decision is being made with that in mind, but knowing that, it’s the right thing to do \u2014 not only for the health of the company moving forward, but also for the sake of our customers and those that we want to continue to serve, [to] continue to help move forward in the industry.\u201d<\/p>\n The firm said the goal is to navigate the layoffs with \u201ccontinued empathy.\u201d<\/p>\n \u201cWe think this will put us in a very comfortable position to continue to reinvest in our technology and solutions for the foreseeable future. Of course, we’ll always have to continue to navigate market changes as it happens, but we feel confident that this structure is going to give us the operating approach we need to be very resilient, even if the market declines further,\u201d Chen said.<\/p>\n The firm, one of the largest appraisal management companies in America, cited similar reasons for the layoffs that occurred late last year. At the time, Andrews said the company was restructuring all divisions to reduce expenses and support the future strategy \u2014 which would allow the company to refocus the business on key areas and ensure they were on track for sustainable growth.<\/p>\n In July 2022, Clear Capital rolled out<\/a> two application programming interfaces (APIs) \u2014 a property valuation API and risk assessment API \u2014 to make adopting and deploying modern valuation solutions easier, leading to faster loan closings. The desktop appraisal solutions were developed to meet new desktop appraisal guidelines<\/a> introduced in April 2022. <\/p>\n