A real estate financing startup is laying off a “significant number” of employees, including some in North Carolina.
California-based PeerStreet told the state of North Carolina it is reducing its workforce “as a result of a significant downturn in business.” A Worker Adjustment and Retraining Notification dated Feb. 15 and signed by company president Brewster Johnson says the layoffs will start on April 16.
“Although PeerStreet may attempt to continue operation of its business … the success of the business is unknown at this time,” the company told the North Carolina Department of Commerce. “Accordingly, no PeerStreet employee who is being laid off should count on being recalled/rehired for employment with PeerStreet."
PeerStreet developed a platform that digitizes fractional investing in real estate loans. The goal, according to the company, is to “democratize” access to real estate debt investment.
“The name PeerStreet is all about leveling the playing field between Main Street and Wall Street,” Johnson told CBJ sister publication L.A. Business First in 2015. “I as an individual can invest in the same type of asset that Goldman Sachs would historically be able to invest in.”
As of mid-2021, the firm had more than $4 billion transacted on its platform.
PeerStreet has 64 employees, including personnel working in North Carolina, Florida, Illinois, New York, South Carolina, Texas, Utah and Washington — in addition to its home state of California. The plan is to lay off 43 positions.
The impact in North Carolina was not immediately clear, and PeerStreet has not returned a request for additional information. Seniority “will be just one factor in the layoff decisions,” the company said, telling the state that it would also consider business necessity, expertise and past performance while making personnel decisions.
The company, based in El Segundo, was founded in 2014. Its backers include Andreeson Horowitz, World Innovation Lab and Thomvest. To date, it’s secured nearly $122 million in outside capital, according to Crunchbase. And it's confirmed layoff rounds before.
PeerStreet's struggles are just the latest job cuts to hit the tech sector in North Carolina. ChannelAdvisor in Morrisville is losing dozens of workers in the wake of its buyout by CommerceHub, with additional layoffs being made by Charlotte startup Oyster HR and Wilmington-based fintech nCino.
