Yuli Ou 1024x576

Flyhomes Lays Off Workers Amid ‘Housing Recession’

The layoffs are the second round of job cuts from the end-to-end platform pioneer this year. They are also adding to thousands of other property layoffs this year.

New markets require new approaches and tactics. Experts and industry leaders take the stage Inman Connect New York in January to help navigate the market shift — and prepare for the next one. Meet the moment and join us. Register here.

Flyhomes, a vertically integrated brokerage and mortgage lender, announced on Wednesday that it was laying off employees – the second time it has cut workers in the past five months.

The company announced the layoffs on LinkedIn, saying: “We are very sad to share that today we are saying goodbye to many of our beloved teammates at Flyhomes.” The announcement did not say how many jobs were cut or what percentage of the company’s workforce they represented.

In response to an Inman inquiry, the company said it would not share additional information beyond the LinkedIn announcement.

However, the announcement pointed to “rapidly shifting market conditions” that required taking “painful steps” to “secure the long-term trajectory of the company.”

“The reality is that the housing sector is now in recession, and the latest reports show that the market is expected to continue to cool longer than anyone initially predicted,” the announcement continued.

Flyhomes previously laid off 20 percent of its workforce in July. At the time, the company cited rapidly rising mortgage rates and cooling demand for housing as the reason for the cuts.

In the event of Wednesday’s new round of layoffs, Flyhomes said on LinkedIn that employees who lost jobs would receive severance packages and “transitional support.”

Flyhomes has worked to pioneer the all-in-one real estate platform. In addition to both a brokerage and mortgage business, the company has also gained attention for its power buyer product. Launched in 2016, Flyhomes has expanded rapidly, thanks in part to $150 million in Series C funding it raised last year.

But the company’s growth also collapsed in a worsening housing downturn. The downturn first affected mortgage providers and has since spread to other sectors. In all, thousands of real estate workers lost their jobs as lenders, brokers and technology companies all scrambled to cope with changing market conditions.

The downturn has also been particularly difficult for real estate technology companies. Those that are publicly traded – which does not include Flyhomes – have seen their share prices tumble for months. The top stories in real estate tech lately include the revelation that Opendoor lost nearly $1 billion in a single quarter, and that Redfin has now axed its iBuying program.

In Flyhomes’ case, the company eventually thanked departing workers for their contributions.

“They worked tirelessly to build this company and the Flyhomes story will forever be part of their legacy,” the LinkedIn announcement reads. “They are incredible people who came to Flyhomes because they wanted to solve very difficult problems and didn’t shy away from a challenge.”

Email Jim Dalrymple II

Related Posts