Seattle Real Estate Startup Announces Job Cuts Amid Housing Market Slowdown
Amid the ongoing challenges in the real estate market, Flyhomes, based in Seattle, revealed recent layoffs, citing the industry’s persistent difficulties as the key factor. The company emphasized the need to restructure to best address the swiftly evolving real estate landscape, as noted in a LinkedIn post.
However, specific details, such as the number of jobs affected, were not disclosed by a Flyhomes spokesperson. Employees engaged in field operations and escrow shared on LinkedIn about being impacted or laid off due to these cuts. Established in 2016, Flyhomes initially gained attention by offering short-term loans enabling buyers to compete as cash buyers, particularly advantageous during the frenzied housing market of 2020 and 2021.
The company experienced rapid growth after securing substantial funding in 2021, boasting a workforce of 820 employees in early 2022. Nevertheless, changes in the housing market, marked by rising interest rates and sustained high home prices, have altered buyer dynamics, reducing the necessity for all-cash offers and impacting Flyhomes’ business model. As the market shifted, Flyhomes initiated multiple rounds of layoffs, including a significant reduction of 20% of its staff in the summer of 2022.
This trend isn’t exclusive to Flyhomes; other real estate entities like Zillow, Redfin, and Compass have also undergone workforce reductions due to market shifts and changing dynamics in recent times. For instance, Compass, a New York-based real estate firm, trimmed jobs, including 84 positions in Washington, in the preceding year.