Real estate startup Flyhomes is laying off employees for the third time in a year, citing an effort to focus on profitability amid the broader housing market downturn.
The Seattle company confirmed the cuts to GeekWire on Monday. A spokesperson declined to provide details on the number of employees affected or an updated headcount. LinkedIn posts from recently laid off employees suggest the cuts impacted operations associates and underwriters.
“I will confirm that this extremely difficult decision was necessary for the company to navigate the sustained, challenging real estate market conditions and drive our continued focus toward profitability,” Flyhomes spokesperson Justin O’Neill told GeekWire in an emailed statement.
Flyhomes, which helps home-buyers secure purchases with all-cash offers, laid off 20% of its employees in July. The company reduced headcount again in November. It now has about 470 employees, down from about 700 in November, according to LinkedIn.
Seattle real estate tech companies including Redfin, Zillow, Loftium, and Inspectify have also trimmed their workforces.
U.S. home prices and sales continue to trend downward amid higher mortgage rates and a lack of supply. Pending home sales were down 17% in the four-week period ended May 28; median sale prices were down 1.9%; and new listings were down 23%, according to a recent Redfin report.
Many venture-backed startups across various industries are being advised to reduce headcount and extend cash runways to withstand prolonged economic headwinds and slower funding. Venture capital allocated to Seattle-based startups hit a 6-year low in the first quarter.
Founded in 2016, Flyhomes offers a suite of mortgage and home-buying services. It offers a Buy Before You Sell program that helps sellers buy and move into their next home before selling their current property.
Flyhomes’ reduction comes after the company acquired the host-to-own startup Loftium in February, which included onboarding 11 new employees as part of the deal.
The company is led by CEO and co-founder Tushar Garg. It has raised more than $200 million to date, including a $150 million Series C round raised in June 2021. Investors include Norwest Venture Partners, Battery Ventures, Fifth Wall, Camber Creek, Balyasny Asset Management, Andreessen Horowitz, Canvas Partners, and former Zillow Group CEO Spencer Rascoff.
