Rocket Companies eliminated about 50 positions last week amid the industry rightsizing with layoffs in the higher-rate environment.
“As is common practice in all companies, Rocket regularly looks at the priorities of the business and what roles are needed to achieve those goals,” Aaran Emerson, a Rocket spokesperson, said in a statement. The eliminated positions represent less than one-quarter of one percent of the roles in the company, Emerson added.
Positions that were affected include software engineers at Rocket Central and Rocket Mortgage, according to LinkedIn posts from affected employees.
“Unfortunately, I count to be one amongst those 10% employees cut down at Rocket Mortgage. On 01/18/2023, I got impacted with [a] mass layoff at Rocket Mortgage. Marks a day, The Wednesday!,” a former software engineer at Rocket Mortgage wrote on LinkedIn.
“I’ve unfortunately been included in the Rocket Central layoffs and am looking for my next opportunity,” according to a LinkedIn post from a former senior software engineer at Rocket Central.
The recent layoffs mark the second round of job cuts at the Detroit-headquartered company. The prior round took place the first week of this year when a reorganization at Rocket Central’s marketing team led to about 20 positions being eliminated, the company confirmed.
Rocket, like other originators, struggled to maintain volumes as rates rose over the course of 2022. In the third quarter, Rocket Mortgage originated $25.6 billion in production, losing its title as the country’s largest mortgage originator. Arch-rival United Wholesale Mortgage overtook Rocket.
In its latest effort to drum up business for its mortgage business, Rocket Pro TPO recently began offering credit reports at no cost to brokers when closing through the Detroit lender. It is also providing 7,500 in credits for first-time homebuyers in underserved communities
After reporting a financial loss in the third quarter, the Detroit company has been emphasizing itself as a fintech company and has been aggressive in trying to capture potential homeowners through its platform.
That effort includes Rocket Rewards, a loyalty program that distributes points toward financial transitions across the Rocket platform, which was launched in November.
“As we navigate and adjust to the current environment, we’re continuing our long-term strategy of investing in our platform with an eye toward the future,” Brian Brown, Rocket’s CFO, told analysts in its recent earnings call.