Seattle-based Flyhomes recently announced a new wave of job cuts due to the challenging real estate market. In a LinkedIn post, the company stated that these cuts were necessary to adapt to the evolving needs of customers in an industry facing persistent difficulties. Unfortunately, the company spokesperson declined to provide further details regarding the number of jobs affected. Employees in field operations and escrow took to LinkedIn to share their experiences of being laid off or impacted by the cuts.
Established in 2016, Flyhomes aimed to transform any home shopper into a cash buyer by offering short-term loans. This approach allowed buyers to make all-cash offers, enhancing their competitiveness in a highly competitive housing market. The Flyhomes model thrived during the frenzied market of 2020 and 2021. After securing $150 million in funding in the summer of 2021, the company experienced rapid growth and boasted 820 employees by early 2022, as reported by the Puget Sound Business Journal.
Since that time, the housing market has experienced a change due to the increase in interest rates. However, home prices have not decreased significantly, resulting in fewer individuals being able to afford higher monthly mortgage payments.
In this current situation, buyers are encountering fewer and less competitive bidding wars, and the ability to offer cash upfront is not as crucial. Flyhomes has undergone multiple rounds of layoffs since the cooling down period began, including a reduction of 20% in its workforce during the summer of 2022.
Seattle-based companies Zillow and Redfin have also downsized their workforce due to the market shift in recent years. Additionally, New York-based real estate firm Compass eliminated jobs last year, including 84 positions in Washington.
Personally separate from bargainhousenetwork.com I think its frustrating that companies such as Flyhomes can mas fire people with such short to no notice. If companies plan to fire in large amounts i think that there employees should have time to find a new job before being let go if there company no longer can support a large number of employees. But what do you think?
Do you think Flyhomes is in the right? Let me know in the comments bellow.