Pacaso is the latest real estate company to hand out walking papers, with some 30 percent of its team set to be laid off.
According to a company-wide call on Tuesday, reported on by Inman, Austin Allison and Spencer Rascoff announced the staff cuts, ensuring impacted employees would provided severance, health care coverage and career assistance.
The reduction in workforce will bring Pacaso’s headcount to 200-plus employees.
Brian McGuigan, Pacaso’s Director of Corporate Communications, told Inman the recent rate hike coupled with the high cost of housing led to the decision, with layoffs hitting all departments.
“Early in 2022, the capital markets—venture capital firms and public market investors—were enthusiastically funding growth stage companies,” Allison wrote in a company blog post. “Our business expansion and headcount were designed for this hyper-growth environment, which was appropriate for the market conditions at the time. Fast forward ten months and we now must prepare for a recession. This change reverts our headcount back to January 2022 levels, and right-sizes our team for the immediate road ahead.”