No one can predict the future of real estate, but you can prepare. Find out what to prepare for and pick up the tools you’ll need at the immersive Virtual Inman Connect on Nov. 1-2, 2023. And don’t miss Inman Connect New York on Jan. 23-25, 2024, where AI, capital and more will be center stage. Bet big on the roaring future, and join us at Connect.

In a third round of layoffs in the last 12 months, rent-to-own company Divvy Homes is handing out pink slips to 95 employees in 21 states — including a number of senior managers at the company’s San Francisco headquarters, according to Worker Adjustment and Retraining Notification Act (WARN Act) notices the company filed last week.

Inman first reported the latest round of layoffs Friday, based on social media posts authored by seven affected employees. Divvy has not responded to Inman’s requests for comment on how many employees remain at the company, what markets it serves, and what Divvy’s long-term strategy is.

Divvy’s website currently facilitates home searches in 19 markets in nine states: Arizona, Colorado, Florida, Georgia, Minnesota, Missouri, Ohio, Tennessee and Texas.

In a WARN Act notice filed with the California Employment Development Department last week, Divvy said the layoffs will take effect Nov. 7, and include 26 employees in California, including the company’s chief legal officer, vice president of compliance and head of design.

Another 12 employees are being let go in Texas, including the head of brokerage, a compliance program manager and the company’s vice president of communications and public relations.

In Colorado, Divvy is parting ways with 10 employees, including the head of asset management, national escrow officer, and agent growth manager.

Other affected states include Arizona, Delaware, Florida, Georgia, Hawaii, Illinois, Massachusetts, Maryland, Mississippi, Missouri, North Carolina, New Jersey, New York, Ohio, Oregon, Pennsylvania, Washington and West Virginia.

Advertisement

In an Aug. 1 article, the New York Times reported that Divvy owned 7,000 homes, and that “more renters are struggling to pay, forcing Divvy to file more eviction notices.”

Divvy told the New York Times that it evicts clients only as a last resort, and that not all eviction notices result in completed evictions.

Adena Hefets

“With mortgage rates at all-time highs, our mission is more critical than ever,” Divvy CEO Adena Hefets told the New York Times in a statement. “Divvy gives renters the power of ownership: Pick out a home, build savings, and have the option to make it your forever home.”

Last year, Hefets told Inman that she expected rising home prices and mortgage rates could help drive Divvy’s business, but that the company’s goal was “not necessarily to expand a ton into new markets.”

“I do want to acknowledge the fact that the market is really tight right now, and we’re being impacted just the same way that every single individual and any company you name is being impacted by low inventory levels,” Hefets said at the time.

Get Inman’s Mortgage Brief Newsletter delivered right to your inbox. A weekly roundup of all the biggest news in the world of mortgages and closings delivered every Wednesday. Click here to subscribe.

Email Matt Carter

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×