rightmove.co.uk Laying Off 20% of Staff

Today rightmove.co.uk issued a press release and a stock market release revealing changes to their organisational structure they claim are aimed at increasing focus on its core UK property advertising business. The changes could also could be seen as belt tightening by the market leading company, which, like other portals, is under assault by real estate agents demanding lower rates.

In the market release, rightmove.co.uk say there “will be a reduction in headcount of approximately 20% and a reduction in the cost base for 2009 of around £5m, although Rightmove may increase its marketing spend by up to £1m. Almost all the employees involved in the restructure are on one month’s notice so it is anticipated that the costs arising from implementing the changes will be taken in 2008 without any material impact on 2008 profits.”

Miles Shipside, commercial director of rightmove.co.uk, described the move as a change from a sales-oriented structure to an account management structure, arguing that it would allow the company to increase its investment in consumer marketing during 2009.

As reported in the press release, the key changes are:

1. A reorganisation of the existing estate agency sales force and customer service teams into account management teams, each covering a region of the country.
2. Greater focus on the national and regional house builders as well as the growing housing association market, with less focus on more speculative individual developments and property conversions.
3. A scaling back of the Rightmove Overseas business to reflect a decreased demand for property in continental Europe.
4. Exiting from direct selling of banner advertising on the Aboutmyplace mapping website reflecting the general excess capacity for on-line generalist banner advertising.
5. A general reduction in overheads in line with the tough trading conditions being experienced by the property industry as a whole.

This news comes hot on the heals of an announcement earlier this week that both zillow.com and redfin.com in the US will be laying of staff as they batten down the hatches for th economic storm.

1. rightmove.co.uk Announces Restructure

   UK market leader rightmove.co.uk has announced changes that will simplify its organisation and Board, effective as of January 2009....

2. Rightmove Overseas Cuts Rates

   Rightmove Overseas has brought in a new pricing structure, and for some lucky agents this will mean prices may drop by around 50%. ...

3. Rightmove Trading Ahead of Expectations

   Rightmove plc, owner of rightmove.co.uk, the UK's number one property website, today published its Interim Management Statement....

4. Are Things Bad for Rightmove?

   Three interesting pieces of information have come to light in the last couple of weeks concerning rightmove.co.uk. Firstly, rightmove.co.uk reported that it lost 1,300 agents in the first have of the year but offset this loss by signing up 800 new agents. Secondly, a survey conducted by Estate Agency Today said 75% of agents would not renew with rightmove.co.uk and would move to the free sites. Finally, an article in the Telegraph reveals that Rightmove is one of the top 10 shorted stocks with more than GBP 50m staked on the shares continuing to slide. The question is ... does this really mean that Rightmove is in trouble or will they ride through the storm and profitably remain in front? Read on for more ... ...

5. redfin.com Announces Staff Layoffs While trulia.com Stays Optimistic

   redfin.com, the first online brokerage for residential real estate in the US, is clearly feeling the pinch. The company has announced on its blog that it has laid off around 20% of their staff. In parallel to this, trulia.com has announced that it is not laying off people but will be changing its strategic focus and ensuring that costs are kept under control. Read on for more ... ...