Today: Apr 17, 2024

Flyhomes, Seattle’s realty startup, trims staff amidst tough industry turmoil.

4 months ago

Seattle-based real estate startup, Flyhomes, has announced another round of layoffs due to “persistent and worsening industry headwinds”. The number of affected employees has not been disclosed, but the company has previously conducted layoffs in June, July, and November 2022.

  • Flyhomes, which assists homebuyers in securing purchases with all-cash offers, has experienced numerous cutbacks in recent years.
  • Aside from internal restructuring, other real estate startups including Redfin, Opendoor, and Compass are also facing industry-wide layoffs due to higher mortgage interest rates and broader macroeconomic challenges.
  • Despite the ongoing cuts, Flyhomes has managed to raise more than $200 million, which includes a $150 million Series C round launched in June 2021.
  • The company provides services including a “Buy Before You Sell” program that aids sellers in buying and transitioning to their next home before selling their current property.
  • As a result of a switch to a ‘remote-first’ work policy, Flyhomes has downsized its office space and is currently based in a 4,000 square foot office in downtown Seattle.

Flyhomes was founded in 2016 by CEO Tushar Garg and has made significant acquisitions over the years. These include acquiring Loftium, a rent-to-own startup in February, and assets from Home Sale Assured, a Chicago-area company assisting homeowners in moving to a new home without necessitating to sell their current property. Notably, Flyhomes’ investors feature remarkable entities like Norwest Venture Partners, Battery Ventures, Andreessen Horowitz, and former Zillow Group CEO Spencer Rascoff.

The consistent “industry headwinds” that Flyhomes and other real estate startups are experiencing could have substantial implications for the overall real estate sector, affecting operations, profitability, and workforce size.