The recent layoffs happening in various organizations across the globe have put everyone in a state of worry and uncertainty. Today, we will have a detailed look at one such organization, Magicbricks- a renowned name in the real estate market.
Magicbricks is India’s No.1 property portal owned by Times Internet, a subsidiary of Bennett, Coleman & Co. Ltd. It was founded in 2006 and has its headquarters in Noida. The platform has over 10 lakh properties listed and has attracted over 16 lakhs visitors every month.
History and Funding:
Magicbricks was launched by the Times group as a platform to connect buyers and sellers of properties. After their launch in 2006, they scaled-up operations by launching their mobile app in 2013. Magicbricks’ notable funding rounds include $20 million in 2015 and $4 million in 2018, apart from their seed funding amount of $1 million.
Magicbricks has been performing incredibly well in the real estate sector, having gained a significant market share in the past few years. In terms of competition, they are ahead of their rivals like Housing.com, Proptiger and 99 Acres.
Reasons for Layoffs:
While Magicbricks has been a significant player in the real estate space, like many other companies, they have also been witnessing the adverse effects of the COVID-19 pandemic. The global pandemic has caused significant fluctuations in the Indian real estate sector, causing a decrease in demand and sales.
Number of Employees Laid Off:
On May 17, 2020, Magicbricks laid off 250 employees based out of their Noida headquarters. It accounts for around 5% of the company’s total workforce.
Statement from Company Stakeholders:
While Magicbricks did not release an official statement regarding the layoffs, media sources suggest that it was due to the ongoing COVID-19 crisis. The management has further stated that they are trying their best to ensure minimal impact on their customers’ experience.
In conclusion, the layoff of 250 employees from Magicbricks, a leading player in the real estate sector, is undoubtedly a cause of concern for the employees affected and the industry as a whole. While the company’s management has not released an official statement regarding the layoffs, we can say that everyone in the affected industry should be prepared for further layoffs until the situation stabilizes.