In October 2022, San Francisco-based proptech unicorn Pacaso laid off 100 employees, representing 30% of its then 300-person workforce. The company, which facilitates co-ownership of luxury second homes, cited a deteriorating economic environment and fears of a pending global recession as the primary reasons. A key factor was a 28% quarterly drop in mortgage rate locks for luxury second homes, signaling reduced demand. The layoffs, described as a proactive measure to align expenses with revenue, returned the company's headcount to just over 200, its level from January 2022. No single department was disproportionately affected, and the company assured that services for existing owners and agent commissions would remain unchanged.
