Seattle-based real estate tech startup Flyhomes is laying off employees for the second time this year as the industry sector has been hit hard in recent weeks by the cooling housing market.
Flyhomes announced the layoffs in a LinkedIn post Wednesday. A Flyhomes spokesperson said the company wasn't providing specifics beyond what it shared in the LinkedIn post.
"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 post said. "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."
The post also noted Flyhomes is offering severance packages and transition support for laid off employees. Flyhomes laid off about 20% of its staff in July, when the company cited rising interest rates and lower homebuying demand as reason for the cuts.
Flyhomes had about 820 employees as of January but didn't provide a specific number for how many people were let go in July.
The company was founded in 2016. The startup helps consumers present all-cash offers when buying a home so they can stand out from other buyers, and after they move into their new homes, consumers can transition to a long-term mortgage, either through Flyhomes or an outside lender.
Flyhomes raised a $150 million Series C round in June 2021. The company's 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.
"To everyone leaving us today, we are eternally grateful to them for their contributions," the post said. "For anyone who comes across this post looking for talent or knows someone hiring, please consider these folks for your roles."
Other local real estate tech companies have also laid off employees recently. Seattle-based Redfin on Monday announced it was laying off about 862 employees, or 13% of its workforce, and the company is shuttering its home-flipping business, RedfinNow. Redfin had already laid off about 470 employees in June. Seattle-based Zillow, meanwhile, laid off about 300 workers in October, just under a year after Zillow in November 2021 announced it was shuttering its own home-flipping business, Zillow Offers, and cutting about 25% of its staff in a move that would take several quarters.
