Reno-based real estate appraisal and technology firm Clear Capital has laid off more than a quarter of its workforce, citing a significant drop in business.
Clear Capital confirmed the layoffs when they were reached on Wednesday.
“Clear Capital is restructuring all divisions of the business to reduce expenses and support our future business strategy in the current real estate market environment,” said CEO Duane Andrews. “This will allow us to refocus activity on key areas and ensure that we are on track for sustainable growth.”
“The impact of a rising interest rate environment in the mortgage industry has resulted in a significant decline in volume from our clients, which has forced us to make some tough decisions,” Andrews added. “We are working closely with every employee during this transition.”
The Reno Gazette Journal reached out to Clear Capital after being contacted by an employee who was fired Wednesday morning. The layoffs were made via Google Meet, according to the employee.
Clear Capital did not provide a specific figure for the layoffs, saying only that the decision affects “27% of Clear Capital’s global workforce”. Clear Capital is headquartered in Reno with offices in Truckee and Roseville, California, and Bloomington, Minnesota.
The layoffs represent a dramatic reversal of fortune for Clear Capital.
Last November, Clear Capital announces that its workforce has reached 1,400 employees in its four subsidiaries. At the time, the company said it had just hired 350 new employees and planned to add 170 more.
Clear Capital was also confirmed as the first major tenant of the Reno City Center project earlier this year. The Downtown Reno Project by Las Vegas-based CAI Investments is undertaking a major renovation of the former Harrah’s Reno hotel and casino into a mixed-use development with residential, office and commercial space.
However, with inflation spiraling out of control after the pandemic, Clear Capital saw its business affected by the multiple interest rate hikes initiated by the Federal Reserve to keep inflation under control.
Jason Hidalgo covers business and technology for the Reno Gazette Journal, and also reviews the latest video games. Follow him on Twitter @jasonhidalgo. Do you like this content ? Support local journalism with a RGJ digital subscription.