Divvy Homes

Divvy Homes, a fintech startup in the real estate tech industry, laid off 94 employees in September 2023, marking its third round of job cuts within a year. This reduction affected nearly half of the company's workforce, which was estimated to be just under 200 employees prior to the layoffs, representing a cut of about 50%. The terminations, effective November 7, impacted various roles including vice presidents and engineers across the U.S. The company, once valued at $2 billion with backing from investors like Andreessen Horowitz and Tiger Global, attributed the layoffs to challenging macroeconomic conditions, high interest rates that disrupted its business model, and the need to conserve cash. This follows earlier layoffs in February and September 2022, reflecting ongoing struggles in the high-interest-rate environment.

Divvy Homes, a San Francisco-based rent-to-own startup in the real estate technology industry, conducted another round of layoffs on February 15, 2023, affecting high-ranking employees such as the head of growth marketing, IT manager, and senior product manager. This follows a previous layoff in September 2022, where about 40 employees, or 12% of the workforce, were cut due to worsening economic conditions. The company, which had raised significant funding and was valued at $2 billion in 2021, cited ongoing macroeconomic challenges and the need to adjust headcount for the volatile environment. The layoffs reflect broader struggles in the startup sector amid a tightening market.

Divvy Homes laid off 40 employees representing approximately 12% of its workforce on 2022-09-27.