Flyhomes is the latest tech startup to cut jobs.
The Seattle real estate company laid off approximately 20% of its staff, a spokesperson confirmed to GeekWire. The company did not provide an updated headcount. It has 763 employees, according to LinkedIn. One employee said 200 workers were let go.
Tech firms across various industries are laying off employees or freezing hiring as a way to curb expenses amid the current downturn. Rising interest rates are affecting U.S. home sales, which has forced real estate companies such as Flyhomes and others to trim headcount.
Flyhomes cited the impact of interest rate increases on demand for housing in a statement about its layoffs.
“To build the world’s best home buying and selling experience, we must operate in a manner that is both fiscally prudent and sustainable in the face of uncertain economic conditions,” the company said.
Redfin, another Seattle real estate company, laid off 8% of its workforce last month. Compass also cut jobs and shut down its Seattle-based title business.
Other Seattle-area tech startups including Convoy, Qumulo, and Esper have laid off employees in recent months. Google is freezing hiring for two weeks, The Information reported Wednesday.
Founded in 2016, Flyhomes helps people buy homes using a cash offer program which presents customers as the equivalent of cash buyers. A majority of the company’s revenue comes from agent commissions.
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 nearly $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.