Property website Rightmove cuts 20% of workforce

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by Lin Freestone

Rightmove, the operator of the UK’s largest residential property website, is planning to cut its workforce by 20% as fewer house sales are being completed. Approximately 90% of all new and existing homes for sale appear on Rightmove’s website.

The scale of the cuts reflect the company’s view that the current market challenges will continue through 2009, though not at any worse level than previously indicated.

In addition to the large-scale staff cuts, Rightmove is also planning to cut back its overseas business because demand for properties in continental Europe has fallen.

It is estimated that the planned cost reductions will result in savings of approximately £5m. However, the company is considering increasing its advertising budget by £1m.

Rightmove currently has more than one million properties to buy or rent on its website, worth more than £270bn. The number of visitors to the site has plummeted over fears of a looming recession.

It is estimated that more than 35 million hits were received on the site at the height of the property boom.