ReAlpha Tech Corp. is conducting layoffs claiming artificial intelligence is
The real estate technology company reduced its workforce, which includes full-time employees, consultants, temporary workers and independent contractors, by about 25% and consolidated select vendor relationships. Together, these moves will save the company roughly $2 million over the next 12 months, it said.
"Agentic AI has changed the economics of running a company," CEO Mike Logozzo said in a press release Wednesday. "We believe that work that previously required large teams across marketing, technology, product and design can now be executed by leaner teams leveraging AI agents, and those AI capabilities have been compounding faster every month. We have been adopting AI tools as we would rather get there proactively, on our own terms, than be forced into it reactively."
The moves were in part designed to extend ReAlpha's AI-powered operating goal of reducing friction internally and for customers. The company expects each member of the smaller teams to direct and oversee agentic AI tools to produce a greater output, the release said.
"This is also more than just an efficiency story," Logozzo said. "We are reshoring select operational functions previously performed outside the United States and reducing our reliance on offshore operations and domestic third-party vendors. The result is a more centralized, more accountable team, one that can deliver consistent results to the homebuyers we serve, and reduce the friction and complexity that we believe have long defined the homebuying process."
AI-driven layoffs have been a major talking point within and outside of the mortgage industry. In research conducted last year by Arizent, parent company of National Mortgage News,
Research conducted by the Federal Reserve Bank of New York found AI adoption ramped up in 2025, but most businesses did not plan on cutting staff as a result. Almost 50% of service businesses expected to adjust to AI by retraining staff, more than the 13% that expected it to cause layoffs.
Summit Funding recently said it will
ReAlpha made two acquisitions last year. It expanded its presence in home lending with the purchase of
"We believe that these initiatives, combined with our improving gross margin profile and expanding transaction volume, represent a meaningful step toward the positive operating leverage our platform is designed to produce," Chief Financial Officer Thomas Kutzman said in the release. "ReAlpha's strategy of disciplined organic and inorganic growth remains unchanged. We believe that this restructuring will help ensure our cost structure is aligned with the goal of accelerating revenue growth in 2026."
The company expects pre-tax charges to range from $140,000 to $200,000.
The restructuring will be substantially complete by the end of the second quarter, although some action may extend into the third quarter, according to the release.
