As Profits Drop, Dan Gilbert's Rocket Mortgage Will Spend up to $60 Million on Mass Worker Buyouts

May 11, 2022, 8:02 AM

Dan Gilbert

While Dan Gilbert's Rocket Mortgage is still profitable, it's profits fell nearly two-thirds in the first quarter of 2022 compared to the same stretch last year.

As a result, Rocket announced plans to "incur a one-time charge of $50 million to $60 million" by buying out upwards of 1,000 employees, Crain's Detroit Business reports. It has about 26,000 employes.

The company, originally named Quicken Loans, expects the "voluntary career transition program" to save about $45 million per quarter. No timeline has been announced publicly for the cuts. 

In this year's first quarter, Rocket Mortgage reported net income of $1 billion, compared to $2.7 billion last year. 

Read more:  Crain's Detroit Business

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