Major Vancouver-based real estate developer announces ‘difficult’ layoffs

One of Western Canada’s largest private real estate development firms has announced a reduction to its workforce, citing what it describes as a “cost-of-delivery crisis” crippling the ability to build and sell homes.

Beau Jarvis, president and CEO of Vancouver-based Wesgroup Properties, called today “one of the most difficult days” in the company’s history spanning over 60 years, as the firm confirmed it has laid off an undisclosed number of employees across multiple departments.

However, in an email to Daily Hive Urbanized upon inquiry, they stated the workforce size has reduced by 12 per cent.

“Let me be clear — this was an absolute last resort. We exhausted every possible avenue to avoid this outcome, including creating efficiencies in our systems and processes, engaging in aggressive cost-reduction measures… and we even sold off significant assets to generate capital/liquidity to cover overhead costs,” said Jarvis.

“This was all in hopes of preserving as many jobs as possible. But despite these efforts, the economic realities left us no choice. Housing projects across the country are being cancelled or delayed because they are no longer viable. Moreover, we are delivering housing at a cost that people cannot afford to purchase,” he continued.

Jarvis painted a stark picture of the current housing environment, warning that many projects across Canada are being delayed or cancelled due to financial infeasibility.

There has been a perfect storm of factors, including skyrocketing costs for construction materials, labour, and equipment since the pandemic, high land costs in Metro Vancouver, growing development fees imposed by municipal and regional governments, high borrowing costs for the required construction financing, and prolonged depressed demand for ownership housing, especially in the critical pre-sales needed to finalize financing  — all coupled with Canada’s weak economic fundamentals and growing global economic tensions.

He is hopeful that impacted employees can quickly find new roles, with his statement suggesting a very wide range of roles have been impacted, including in development, construction, customer care, asset management, marketing, sales, accounting, finance, interior design, leasing, people and culture, and information technology. According to LinkedIn, Wesgroup Properties is under the category of a company with a total workforce of between 200 and 500 staff.

“Your impact is lasting, and we are deeply grateful. Our priority is to treat each of you with respect, care, and compassion, and to help wherever we can during this transition,” said Jarvis, expressing deep gratitude.

According to the company’s website, they currently have over 49 active projects across the Lower Mainland, more than 1,700 homes under construction, over 6,400 condominium homes, approximately 390,000 sq. ft. of commercial and industrial space under construction, about 1.6 million sq. ft. of total floor area under construction, and over 900 rental homes in the permitting process.

The company’s single largest project is the 130-acre River District neighbourhood in southeast Vancouver, where there will be 10,000 homes for up to 18,000 residents and major local-serving commercial uses upon full completion.

Another major project is the 15-acre Inlet District next to SkyTrain’s Inlet Centre Station in Port Coquitlam, where the developer will build about 2,600 homes, with construction on the first phase scheduled to begin in Fall 2025, based on the company’s previous statements.

Wesgroup Properties is also behind the new Brewery District neighbourhood on the former nine-acre Labatt’s brewery site next to SkyTrain’s Sapperton Station in New Westminster, now approaching full completion with about 1,000 homes and 800,000 sq. ft. of commercial space.

Jarvis further emphasized that Wesgroup Properties “isn’t going anywhere,” affirming that all development activity currently underway will continue as planned.

He stated that the company’s foundation remains solid: “Our portfolio and balance sheet remain strong, and by making today’s difficult decision, we are endeavouring to preserve this. The future work we are pausing is the primary reason for this outcome [of layoffs].”

As economic pressures continue to mount, Jarvis called for a broader recognition of the affordability crisis from a supply-side perspective, emphasizing the urgent need for policy and market conditions that make housing construction viable again.

This is the second high-profile layoff in B.C.’s real estate industry this spring, following Vancouver-based real estate marketing firm Rennie’s announcement that they had reduced their workforce by about a quarter to 92 staff.

In April 2025, a market forecast report by Rennie estimates the number of unsold condominium inventory in Metro Vancouver is projected to jump by 60 per cent in 2025 — from 2,179 units in completed projects to 3,493 units by the end of 2025. Sluggish conditions could persist beyond this year.

Earlier this week, Vancouver City Council approved new measures to defer Development Cost Levy (DCL) and Community Amenity Contribution (CACs) payments by developers to help prevent a further slowdown of new housing construction, and the resulting greater impacts on housing affordability and supply levels. Many projects are now facing delays and/or are being reworked to improve their financial viability.

Editor’s note: This article has been updated with additional information from Wesgroup Properties.