Italian iBuyer Casavo has laid off 30% of its staff, with CEO Giorgio Tinacci saying Casavo will downsize its iBuying business.
In an open letter published on Casavo's website, Tinacci said "tough decisions are essential for the long-term success of Casavo".
Tinacci highlighted a challenging market context including residential markets facing an expected downturn, lower volumes of transactions, and longer sales cycles affecting Casavo's business performance outlook.
Casavo's iBuying business will be downsized to a "profitable wedge", with "less strategic effort to expand it". Casavo will suspend business generation in "unprofitable or low scale markets", and will invest more in core markets that retain higher brand awareness and stronger track records.
Casavo will also shift "from a growth framework to a profitability framework".
The result from its strategic decisions will be job cuts equal to roughly a third of its workforce.
Casavo raised €400M in Series-D funding in July last year with Tinacci outlining "priority" plans to expand into the Parisian iBuying market, a feat it achieved in October with the acquisition of Proprioo. The startup, founded 2017, was already operating in Italy, Spain and Portugal.