UpEquity, the real estate startup providing all-cash offers to assist potential buyers compete for purchases, is among the latest companies to undergo a new round of layoffs.
The Austin, Texas-based company let go of approximately 10 to 15 employees, accounting for close to 25% of its staff, on December 7, according to multiple sources who requested anonymity. Layoffs occurred across several departments, and among the personnel whose positions were eliminated was its head of mortgage, Dani Hernandez.
Staff were notified of impending cuts in a companywide meeting last Wednesday morning, with affected individuals notified of their status by email shortly thereafter, a source said. A one-time severance payment was provided.
UpEquity has not responded to requests for comment.
The layoff round is at least the second to occur at UpEquity this year. In early summer, the fintech let go of nine staff members. As recently as October 2021, UpEquity was on the receiving end of a $50 million Series B raise, but has not been immune to 2022's wave of diminishing sales and mortgage originations, which industry experts say is set to linger into next year. New purchase loans last week came in 41% below their level of a year ago, according to the Mortgage Bankers Association.
The pace of bidding wars, which companies like UpEquity intended to address, have steadily eroded over the past year as well, according to real estate brokerage Redfin. In August, 44% of purchases faced a competing offer, compared to 63.5% in the same month one year earlier. The share of homes selling within 14 days of listing has also increased by the largest margin in close to three years as well, according to Redfin, pointing to less anxiety among consumers to act quickly on a purchase decision.
The 2022 downturn in mortgage volumes has resulted in thousands of layoffs across the industry. Two other mortgage technology brands with cash-purchase business models, Orchard and Ribbon, also announced job cuts in late November in response to contracting volume. Like at UpEquity, they were not the first occurrences of widespread terminations within the companies this year.
