New Owner of Purplebricks Plans to Cut Over 100 Jobs
A consultation process set to conclude next week will result in approximately 15% of Purplebricks’ employees being made redundant, according to sources. The online estate agent’s new owner, Strike, is finalizing plans to improve the company’s financial performance by axing more than 100 jobs.
Strike, a rival operator, is expected to cut around 15% of Purplebricks’ 695-strong workforce before the takeover is complete. The consultation process, which began after the deal closed in May, is set to reach a conclusion next week. Sources close to the company have indicated that between 100 and 120 jobs will be eliminated.
Despite the UK housing market softening due to a series of Bank of England base rate increases, Purplebricks has performed better than expected since Strike’s purchase. The online property group, once valued at over £1 billion, was worth just over £2 million when Strike agreed to acquire it. Sir Charles Dunstone, the co-founder of Carphone Warehouse and TalkTalk, is one of Strike’s main backers.
A spokesperson for Purplebricks stated, “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 specialized workforce focused on delivering an exceptional customer journey.”
Since the acquisition by Strike, Purplebricks has experienced an increase in weekly instructions and has achieved the highest market share nationally for three out of the past six weeks. The consultation process aims to ensure that Purplebricks adopts the right operating model for continued success in the estate agency industry.
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