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Rocket Companies has offered its employees a second round of voluntary buyouts
According to a statement from Mike Malloy, chief administrative officer for Rocket Central, the company on Friday extended a second round of “voluntary career transition offers” to employees across “a select number of business areas” within the organization.
Malloy cited the downturn in the housing market as one reason for the buyout offering, though he did identify another reason.
“Having experienced several market cycles in our 37-year history we recognize career growth options in certain areas of our business are limited right now, while the housing market normalizes following two years of unprecedented volume,” he said. “As a result of today’s market, some team members have told us they are considering a move to another position or a completely different industry and have asked that we reinstate our career transition incentive, first offered earlier this year.”
The initial voluntary buyout was offered in April by Rocket Mortgage and Amrock, its title company, to 8% of its workforce. At the time, Rocket companies employed approximately 26,000 people, mostly in Detroit, where it is based.
While the initial stated goal was to reduce its workforce by 8%, or approximately 2,080 employees, to this point the company has not confirmed how many employees accepted the offer.
The latest offering, which the company stressed is “completely optional,” will apply to a “small percentage of our team members,” Malloy said, without citing a specific goal.
He said the severance package will include “several months” of salary, a portion of employees’ banked paid time off, benefits coverage through the end of the year, and career transition services — including one-on-one career coaching, résumé building, and job-search assistance, the company said.
Rocket Companies Inc. saw its profits fall 94% in the second quarter, as the housing market continues to contract due to rising mortgage rates and shrinking home affordability. Its mortgage origination volume also fell dramatically, totaling $34.5 billion in the second quarter, down 59% year over year.
Rocket is not the only mortgage lender dealing with the financial impact of the housing market downturn, with other companies announcing layoffs or shutting down, including First Guaranty Mortgage, Sprout, Mr. Cooper and loanDepot.