Arabnews24.ca:Thursday 3 August 2023 04:47 PM: The new owner of Purplebricks, the online estate agent, is finalising plans to cut more than 100 jobs in a bid to improve its financial performance.
Sky News understands that Strike, a rival operator, is close to rubber-stamping plans to axe roughly 15% of Purplebricks' 695-strong workforce prior to the takeover.
Sources close to the company said on Thursday that a consultation process signalled after the deal closed in May would reach a conclusion next week.
In total, between 100 and 120 jobs are expected to go, they said.
Despite a softening UK housing market which has been affected by a protracted string of Bank of England base rate increases, Purplebricks is said to have fared better than expected at the time of Strike's purchase.
Once worth well over £1bn, the online property group was worth little more than £2m when Strike agreed to buy it.
Strike's main backers include Sir Charles Dunstone, the Carphone Warehouse and TalkTalk co-founder.
"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," a Purplebricks spokesman said.
"However, we have also proposed a significant number of new roles, specifically designed to enhance our specialised workforce focused on delivering an exceptional customer journey."
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He added: "Since the acquisition by Strike, Purplebricks has seen an uptick in weekly instructions and has achieved number one market share nationally for three of the past six weeks.
"This consultation is about ensuring Purplebricks has the right operating model going forward, providing a solid foundation for continued success in the estate agency industry."
