Just days after announcing it was suspending its core cash-offer business, proptech startup Ribbon has laid off an estimated 170, or 85%, of its workforce, Business Insider reports.

The drastic cuts follow a round of 136 redundancies in July and leave Ribbon with a skeleton crew of less than 30, a company representative told the news site.

“The company’s situation has changed considerably since our last email announcing the upcoming reduction in force (RIF),” Ribbon founders Shaival Shah and Wei Gan wrote in a letter to staff that was obtained by Business Insider. “This is primarily due to ongoing discussions with our funding partners. I know we have mentioned this already, but RIF will have to be much deeper based upon the events of the last few months and the uncertainty of what lies ahead. Business circumstances continue to evolve, and unfortunately severance packages will differ from what we originally believed to be achievable.”

Ribbon was one of a number of companies referred to as “power buyers,” dedicated to arming home shoppers with cash in hand so they could better compete in bidding wars. But as interest rates have shot up over the last year, the market for cash-offer products has dried up.

After dropping its cash-offer servicer, Ribbon’s stated plans for continued operations were vague. A company spokesman told Inman its focus would turn to “supporting agents and lenders as they adapt to the changing market. That includes solving problems around home affordability, with tools that could extend beyond RibbonCash and the power buyer model.”

Several other power buyers have announced layoffs over the last year, including Knock, Orchard, FlyHomes and Homeward.

As with those companies, Ribbon’s turn of fortune was as swift as it was drastic. The company, founded in 2017, closed its last major funding round in December 2021, hauling in $150 million, half in equity financing and half in debt for working capital. The company had planned to expand to new states throughout 2022.

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