More than 100 jobs to be axed by new Purplebricks owners
More than 100 staff are set to lose their jobs at online estate agency Purplebricks, following Strike’s takeover of the firm.
According to Sky News, new owners at rival Strike are looking to improve the financial performance of the stricken agency by cutting 15% of its 695-strong workforce.
Between 100 and 120 jobs are expected to go after a consultation process, which began once the £1 deal was signed in June.
Strike, a company backed by Carphone Warehouse and TalkTalk founder Sir Charles Dunstone, has changed Purplebricks’ name to Bricks Newco plc and delisted the firm from trading on AIM on June 16.
The Solihull-based company put itself up for sale in February, to see if new ownership could steer the struggling firm in the right direction.
A Purplebricks’ spokesperson told TheBusinessDesk.com:
“We are in a period of consultation with a number of our colleagues as we look to restructure the business for long-term sustainability and growth. 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 specialised workforce focused on delivering an exceptional customer journey. We recognise this is a difficult time for many of our colleagues, and we are providing support throughout the process and beyond.
“Since the acquisition by Strike, Purplebricks has seen an uptick in weekly instructions and has returned to its number one market share nationally. 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.”
Purplebricks said the £1 deal was the only one which had the “certainty of funding and necessary speed of delivery” and was supported by all its directors as well as major backer Axel Springer.
Chairman Paul Pindar, said whilst he was “disappointed with the financial value outcome” this deal “provided a better return for shareholders, with the same certainty of funding and speed of delivery necessary to provide the stability the company needs”.
