Major Purplebricks layoffs as close to 100 to lose jobs – London Wallet

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.