Real estate startup Flyhomes is implementing its third round of employee layoffs within a year. The Seattle-based firm, which specializes in helping homebuyers secure all-cash offers, announced the workforce reductions on Monday, according to a report from GeekWire. Though the number of affected employees wasn’t released, LinkedIn posts from recently laid-off staff suggest that the cuts impacted operations associates and underwriters.
Justin O’Neill, a spokesperson for Flyhomes, told GeekWire that the decision to lay off employees was necessary for the company to navigate the sustained challenges posed by the real estate market and concentrate on achieving profitability.
This is not the first time Flyhomes has resorted to layoffs. In July of last year, the company reduced its workforce by 20 percent, and another round of headcount reductions occurred in November. As a result, the company’s current employee count stands at approximately 470, down from approximately 700 in November, according to LinkedIn data. Other real estate tech firms in Seattle, including Redfin, Zillow, Loftium and Inspectify, have also implemented workforce reductions.
The broader housing market in the United States has been experiencing a downward trend in home prices and sales due to increased mortgage rates and a shortage of available properties. According to a recent report by Redfin, pending home sales decreased by 17 percent in the four-week period ending on May 28. Additionally, median sale prices dropped by 1.9 percent, and new listings were down by 23 percent.
The challenging economic climate has prompted many venture-backed startups in various industries to downsize their workforce and extend their cash reserves in order to weather the storm of reduced funding opportunities. During the first quarter, venture capital funding allocated to Seattle-based startups hit a six-year low.
Established in 2016, Flyhomes offers a range of mortgage and home-buying services, including Buy Before You Sell, which enables sellers to purchase and relocate to their next home before selling their current property.
The recent layoffs at Flyhomes follow the company’s acquisition of Loftium, a startup focused on hosting-to-own arrangements, in February. As part of the deal, Flyhomes onboarded 11 new employees.
Tushar Garg, the CEO and co-founder of Flyhomes, leads the company. To date, Flyhomes has secured over $200 million in funding, including a $150 million Series C round raised in June 2021. Investors in the company include Norwest Venture Partners, Battery Ventures, Fifth Wall, Camber Creek, Balyasny Asset Management, Andreessen Horowitz, Canvas Partners and former Zillow Group CEO Spencer Rascoff.