Flyhomes, a Seattle-based real estate company, is cutting back on employees after five months.
“Building the world’s best home buying and selling experience can only happen if we continue to adapt to the rapidly shifting market conditions, and take the necessary, albeit painful steps, to preserve capital through uncertain economic conditions to ensure the long term trajectory of the company,” the company wrote on LinkedIn. “The reality is, the housing sector is now in a recession, and the latest reports show that the market is expected to continue cooling for longer than anyone initially predicted.”
The spokesperson refused to give details about the total number of headcount or cuts.
In July, the company fired approximately 20% of its employees. It has around 700 employees, according to LinkedIn.
In an environment of a weakening economy, real estate tech firms are seeking to lower costs. Redfin has announced that 13% of its staff will be laid off Wednesday. Redfin CEO Glenn Kelman said the market in 2023 “is likely to be 30% smaller than it was in 2021.”
Flyhomes was founded in 2016 and helps customers buy houses using their cash offer program. Customers are treated as cash buyers.
The startup also offers mortgage services and has a Buy Before You Sell program that helps sellers buy and move into their next home before selling their current property.
Flyhomes helped more than 3 billion dollars worth of properties to be purchased by customers.
The company is led by CEO and co-founder Tushar Garg. To date, it has raised more that $200 million. This includes a $150m Series C round which was raised in June 2021. Norwest Venture Partners is among its investors. Battery Ventures and Fifth Wall are also involved. Balyasny Asset Management was also involved. Andreessen Horowitz and Canvas Partners were former CEOs of Zillow Group.