Seattle-based real estate tech startup Flyhomes is laying off about 20% of its staff, a company spokesperson confirmed to the Business Journal on Wednesday.
As of January, Flyhomes had roughly 820 employees, but the company didn't specify how many total employees were affected by the layoffs. The company raised a $150 million Series C round in June 2021, when co-founder and CEO Tushar Garg told the Business Journal Flyhomes had between 350 and 400 employees. In a LinkedIn post announcing the layoffs, the company cited rising interest rates and lower demand for housing as reasons for reducing staff.
"The extremely difficult, but necessary, step we took today was necessary to address market conditions that have not been seen in the recent past," the company wrote in the post. "Each of the people leaving has played a critical role in creating, championing, and building Flyhomes. While we know this is a difficult time for those directly impacted by today's actions, we are proud to call them Flyhomes alumni, and we wish them every success in their future endeavors."
Flyhomes said departing employees were offered exit packages, including transition assistance and services.
Flyhomes, founded in 2016, helps homebuyers present all-cash offers, with the goal of giving customers a leg up against other buyers. After customers move into their new homes, they can transition to a long-term mortgage, either through Flyhomes or an outside lender. Its services are available in Washington, California, Oregon, Massachusetts, Texas and Colorado.
The company has raised $190 million so far, and its investors include Norwest Venture Partners, Battery Ventures, Balyasny Asset Management, Fifth Wall, Trustbridge Partners, Camber Creek, Zillow co-founder Spencer Rascoff, Andreessen Horowitz and Canvas Ventures.
"If you are hiring, please consider filling the role with a former Flyhomes employee. The people we said goodbye to today are incredibly talented and would make a great addition to any team," the company wrote in the LinkedIn post.
Multiple Seattle-area tech companies have faced layoffs in recent months. Seattle-based real estate tech company Redfin, for example, laid off about 470 employees in June. Seattle-based data management company Qumulo, meanwhile, laid off about 80 employees that same month.
