Austin-based real estate startup Homeward is laying off dozens of employees due to market changes and reduced home-buying interest, the company’s CEO announced.
Founded in 2018, Homeward operates a digital platform that helps users buy and sell their homes. CEO and founder Tim Heil founded the Austin-based real estate brokerage firm Heil Group.
After a national survey on real estate demand, Homeward will lay off about 20% of its workforce, Hay said in a blog post.
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Homeward did not respond to requests for comment or say how many employees it has. Based in Austin, a technology industry data center based in Austin, the company estimates it has 400 total employees, including 150 in Austin.
In a blog post, Hale said the affected employees will receive tenure-based severance pay, as well as health benefits through the end of August, severance services with the recruiting team, unlimited vesting of stock options, and will not have a competitor. Paragraphs
“While we had a strong financial start to the year, we are now on track for more growth than we anticipated,” Hail said. “This cut… is important to our future success, but it doesn’t make it any easier to part ways with many of our colleagues. Layoffs have a real impact on people, and it’s not a decision we take lightly.”
“The continued acceleration and severity of market volatility has forced us to consider profound changes in our business operations. It’s become clear that these headwinds are part of broader challenges facing our economy. We don’t know how long real estate will soften, so we need to plan for less activity.”
Homeward was created to help buyers purchase a new home before selling their existing home. The startup offers comprehensive financing on new homes and then loans to repurchase their homes from Homeward. The company allows people to buy a new home and sell an existing home before listing, and if the home doesn’t sell within six months, Homeward will buy it at a predetermined price.
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Real estate startups have boomed in recent years, including in Austin, where at least 30 tech companies have focused on the real estate market, according to the Austin Chamber of Commerce.
But the Heil industry has recently achieved great results.
“The market has changed dramatically in recent months: high inflation continues, interest rates are rising sharply, and home sales have fallen from historic highs. Coupled with affordable prices, fewer buyers are looking for a home. Cash offer products distinguish buyers in the home buying process. “The demand is low,” he said.
Homeward operates in more than 20 markets, including Austin, Houston and Dallas. The company recently expanded to Oregon and Washington.
It follows rapid growth for Homeward, which says it will hire more than 250 people in 2021 alone.
Homeward raised $371 million in funding last year, which it says it will use to grow the business, meet demand and expand into new markets. In the year By 2020, Homeward has raised $105 million in funding.