Seattle real estate startup Flyhomes is laying off employees for the second time in 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.”
A spokesperson declined to provide details on the number of cuts or total headcount.
Real estate tech companies are looking to cut costs amid a slowing housing market and rising interest rates, as well as broader economic uncertainty. Redfin announced it was laying off 13% of its workforce Wednesday. Redfin CEO Glenn Kelman said the market in 2023 “is likely to be 30% smaller than it was in 2021.”
Founded in 2016, Flyhomes helps people buy homes using a cash offer program which presents customers as the equivalent of 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 has helped customers buy more than $3 billion worth of homes.
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.