Ribbon

Real estate proptech startup Ribbon has laid off approximately 170 employees, representing about 85% of its remaining staff, in a major round of cuts on November 19, 2022. This drastic reduction leaves the company with fewer than 30 employees. The layoffs follow a previous cut of 40% of its workforce in July 2022, which had reduced headcount to around 200. Founded in 2017 and backed by investors like Goldman Sachs, Ribbon provides software and temporary financing for homebuyers making all-cash offers. The company cited the need for a "re-balance" amid a severe downturn in the housing market, driven by soaring interest rates and falling demand, which has battered the proptech and mortgage sectors. This event is part of a wider wave of layoffs across the tech and real estate industries in late 2022.

Ribbon, a real estate technology company known as a "Power Buyer," laid off 136 employees on July 28, 2022, which represented about one-third of its workforce. The layoffs were part of a strategic move to find a clear and achievable path to profitability amid significant market volatility and shifting housing demands. Despite recently expanding into eight new states and more than doubling its market footprint, the company faced challenges as post-pandemic housing behavior revealed affordability issues and softened first-time homebuyer demand. Ribbon, which had raised $150 million in Series C funding and operates in 15 states, partners with agents and lenders to help homebuyers make cash offers. CEO Shaival Shah emphasized the need to adapt to the new market reality while continuing to expand into new areas and develop tools like RibbonHub to meet evolving needs.