The new owner of Purplebricks, the online estate agent, is finalizing plans to reduce its workforce by cutting more than 100 jobs, which accounts for approximately 15% of the company’s employees.

Strike, a rival operator, is expected to approve the redundancy plans as part of its efforts to improve Purplebricks’ financial performance.

The consultation process, initiated after Strike’s purchase of Purplebricks in May, is set to conclude next week. Sources close to the company reveal that around 100 to 120 jobs are likely to be affected.

Despite a challenging UK housing market due to Bank of England base rate increases, Purplebricks has performed better than anticipated since the takeover by Strike. The company was once valued at over £1bn but saw a significant decrease in value, being worth just over £2m at the time of the acquisition.

The restructuring process aims to shift Purplebricks to a scalable and lower-cost operating model. The company’s spokesman mentioned that while certain roles will be made redundant, they are also proposing new roles to enhance their specialized workforce, focused on delivering excellent customer service.

The acquisition by Strike has led to an increase in weekly instructions for Purplebricks, resulting in it achieving the top market share nationally for three of the past six weeks. The consultation process is aimed at establishing the right operating model for Purplebricks’ continued success in the estate agency industry.