Power buyer Homeward cuts another 25% of staff
Austin-based company laid off 20% of employees in August
Power buyer Homeward enacted its second round of layoffs in three months, trimming staff by another 25 percent.
Founder and chief executive officer Tim Heyl announced the layoffs in a Wednesday blog post. The move comes after the Austin-based company laid off 20 percent of its staff in August.
The exact number of affected employees was not disclosed, but Inman noted the portion cut from the company’s total staff equals roughly 120 people — the same number cut in August’s downsizing. Those laid off will receive severance through the end of the year, health insurance and equity.
In addition to the layoffs, the company will furlough and reposition an undisclosed number of employees. In his blog post, Heyl noted how “things have continued to evolve beyond our initial expectations” in the housing market’s downturn.
As for what changed from three months ago, Heyl noted the company’s outlook on the economy worsened and financial institutions tightened requirements for obtaining new funding.
“Homeward’s future remains promising, but we — and many other companies — are entering a challenging time,” Heyl wrote. “Homeward is prepared, and I fully believe that we are positioned to emerge as the clear leader in our industry.”
Homeward’s first round of layoffs came after Heyl earlier in the summer expressed optimism the company wouldn’t have to enact cuts made by rivals Knock and Orchard. Heyl walked that back in August, and his company has since cut nearly half of its staff.
The homebuying startup offers a “buy before you sell” program and a “buy with cash” program, loaning money to prospective buyers to make cash offers on a home while promising to purchase their old home if they can’t sell it. The company raised $105 million in a fundraising round in 2020, one of the biggest proptech rounds of the year.
Power buyers are among the companies affected by the shift in the housing market, where high prices, rising mortgage rates and economic uncertainty have tightened inventory and scared off buyers and sellers alike.