Energy buyer Homeward has enacted its second round of layoffs in three months, cutting staff by a further 25%.
Founder and CEO Tim Heyl announced the layoffs in a blog post on Wednesday. The move comes after the Austin-based company laid off 20% of its staff in August.
The exact number of employees affected was not disclosed, but Inman noted that the reduced portion of the company’s total workforce equates to around 120 people – the same number reduced during the August downsizing. . Those made redundant will receive severance pay until the end of the year, health insurance and equity.
In addition to the layoffs, the company will lay off and reposition an undisclosed number of employees. In his blog post, Heyl noted how “things have continued to move beyond our initial expectations” in the slowing housing market.
As for what’s changed from three months ago, Heyl noted that the company’s economic outlook has deteriorated and financial institutions have tightened requirements for new funding.
“Homeward’s future remains bright, but we – and many other companies – are entering a difficult time,” Heyl wrote. “Homeward is ready, and I firmly believe that we are well positioned to become the undisputed leader in our industry.”
Homeward’s first round of layoffs came after Heyl earlier this summer expressed optimism that the company would not have to embrace the cuts made by rivals Knock and Orchard. Heyl walked that in August, and his company has since cut nearly half of its staff.
The home-buying startup offers a ‘buy before you sell’ program and a ‘buy with cash’ program, lending money to potential buyers to make cash offers on a home while promising to buy their old house if they can’t sell it. The company raised $105 million in a 2020 fundraising round, one of the biggest proptech rounds of the year.
Power buyers are among the companies affected by developments in the housing market, where high prices, rising mortgage rates and economic uncertainty have tightened inventories and spooked buyers and sellers.