Flyhomes is the latest technology startup to cut jobs.
The Seattle real estate company has laid off nearly 20% of its workforce, a spokesperson confirmed to GeekWire. The company did not provide an updated head count. It has 763 employees, according to LinkedIn. One of the workers said that 200 workers were laid off.
Tech companies in a variety of industries are laying off jobs or freezing hiring to control costs amid the current recession. Rising interest rates are affecting home sales in the United States, forcing real estate companies like Flyhomes and others to cut headcount.
Flyhomes cited the impact of rising interest rates on housing demand in a statement about the layoffs.
“In order to build the best home buying and selling experience in the world, we must operate in a prudent and sustainable manner in light of the uncertain economic conditions,” the company said.
Redfin, another Seattle-based real estate firm, shed 8% last month. Compass also cut jobs and closed its Seattle franchise business.
Other Seattle-area tech giants including Convoy, Qumulo, and Esper have laid off jobs in recent months. Google is freezing hiring for two weeks, the report said Wednesday.
Founded in 2016, Flyhomes helps people buy homes using a payment program that matches customers with cash buyers. The majority of the company’s income comes from representative agents.
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 purchase nearly $3 billion worth of homes.
The company is led by CEO and founder Tushar Garg. It has raised more than $200 million to date, including a $150 million Series C 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.
