Flyhomes lays off workers amid ‘housing recession’

The layoffs are the end-to-end platform pioneer’s second round of job cuts this year. They also join thousands of other real estate layoffs this year.

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

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

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

The announcement, however, highlighted “rapidly changing market conditions” that required taking “painful steps” to “ensure the company’s long-term trajectory”.

“The reality is that the housing sector is now in a recession and the latest reports show that the market is likely to continue to cool for longer than anyone originally anticipated,” the announcement continued.

Flyhomes previously laid off 20% of its workforce in July. At that time, the company cited rapidly rising mortgage rates and slowing housing demand as reasons for the cuts.

In the case of Wednesday’s new round of layoffs, Flyhomes said on LinkedIn that employees who lose their jobs will receive severance packages and “transition support.”

Flyhomes has worked to pioneer the all-in-one real estate platform. In addition to its brokerage and mortgage business, the company has also drawn attention to its strong buyer product. Flyhomes launched in 2016 and has grown rapidly, thanks in part to the $150 million in Series C funding it raised last year.

But the company’s growth has also crashed headlong into a deepening housing slump. The slowdown first hit mortgage providers and has since spread to other sectors. In total, thousands of real estate professionals lost their jobs as lenders, brokers and tech companies all scrambled to cope with changing market conditions.

The downturn has also been particularly hard on real estate technology companies. Those listed on the stock exchange – which does not include Flyhomes – have seen their stock prices plummet for months. The biggest real estate tech stories recently include the revelation that Opendoor lost nearly $1 billion in a single quarter and that Redfin has now scrapped its iBuying program.

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

“They have worked tirelessly to build this business and the story of Flyhomes will forever be part of their legacy,” the LinkedIn announcement said. “These are amazing people who came to Flyhomes because they wanted to solve really tough problems and don’t back down from a challenge.”

Email Jim Dalrymple II

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