Flyhomes is the latest venture capital-fueled real estate company to fall victim to the slowdown in the housing market, opting to lay off 20% of its staff this week.
To operate in a fiscally “prudent and sustainable” manner in the face of uncertain economic conditions, Flyhomes said it made the “difficult decision to reduce the size of our team,” in a LinkedIn post on Thursday.
“The past few months have brought the largest interest rate hike in nearly 30 years, and that has impacted the demand for housing,” the brokerage and lender said.
The Seattle company confirmed it laid off 20% of its workforce, but declined to disclose the current headcount or provide details on severance payments.
According to LinkedIn posts from affected employees, 200 people in Seattle and India were laid off on Thursday. Eliminated positions included a video content specialist, regional sales manager and senior client success specialist in Washington and researchers and recruiters in India.
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The firm, which says it has between 501 and 1,000 employees on its LinkedIn page, has 762 LinkedIn members with the current employer listed as Flyhomes.
Through subsidiaries including Flyhome Brokerage, Flyhomes Mortgage and Flyhomes Closing, Flyhome claims to provide end-to-end home buying services. Founded in 2016, Flyhomes offers a cash offer program for homebuyers with a majority of its revenue coming from agent commissions.
The company, led by CEO and co-founder Tushar Garg, raised $190 million including a $150 million Series C funding round in June 2021 from investors including Norwest Venture Partners, Battery Ventures and Fifth Wall. Since then, the firm expanded to markets including Texas, Colorado and Idaho.
Amid a rise in interest rates and the slowing housing market, a string of vertically integrated real estate companies and “power buyers” have issued pink slips to cut costs. HomeLight laid off 19% of its employees, Sundae eliminated 15% and Orchard got rid of 10% of its workforce in June. Last month, Redfin and Compass combined laid off more than 900 employees.