While the specific number of buyouts being offered is unclear, the cuts will be targeted at all employees of Rocket Central — which provides a variety of support services such as HR and legal for the publicly-traded umbrella company, Rocket Companies Inc. (NYSE: RKT) — as well as an unspecified number of jobs within Rocket Mortgage, the nation’s second-largest mortgage lending company.
The job cuts are being characterized as “a voluntary career transition opportunity to several teams within the organization,” and aim “to better align resources with the needs of both our business and today’s mortgage market,” Mike Malloy, chief administrative officer for Rocket Central, said in a statement.
The incentives being offered to employees include:
- 12 – 24 weeks of pay, depending on tenure, along with extended benefits;
- Compensation for banked personal time off;
- Early vesting of certain stock awards;
- Outplacement services, including one-on-one career coaching, resume building and job search assistance.
“Our goal is to always provide our team members a fulfilling career where they can grow and challenge themselves,” Malloy said in the statement. “The career transition plan is a way for us to be true to this mission, whether our team members build their career here or use our support to find that opportunity elsewhere.”
Employees being offered the buyouts have until July 26 to accept, and their final day of employment would be Aug. 11.
Detroit-based Rocket offered multiple rounds of buyouts throughout last year as interest rates rose rapidly, resulting in a shrinking mortgage market, as well as a home-buying sector challenged by a significant lack of inventory for buyers.
Rocket Companies’ overall headcount fell almost 29 percent from the end of 2021 to the end of 2022 with the number of employees shrinking from about 26,000 employees to roughly 18,500, according to Rocket’s annual report last year.
Total mortgage originations are forecast to decline 20% year-over-year and fall to less than $1.8 trillion this year, according to the Mortgage Bankers Association. The trade group forecasts an uptick in originations to more than $2.16 trillion and next year and nearly $2.5 trillion in 2025.