Veev, a tech-driven Israeli real estate developer of modular prefabrication homes, is the latest Israel Startup Nation firm forced to make cutbacks due to the ongoing worldwide financial crisis. The company is laying off about 30% of its workforce, or 100 people.
Before the cuts, Veev employed 350 people, with 100 employees at its Israel development center.
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The company, however, maintains that the layoffs are part of a plan to invest its money in new projects, not due to financial problems. Veev raised $400 million in a Series D fundraising round this past March.
“Due to the decision to focus the company’s efforts on developing low-rise housing units, it was decided to reduce the workforce developing high-rise solutions,” explained Veev in a statement. “This is a difficult decision taken by the company which was made after much deliberation with the utmost consideration for the company’s employees. This strategic decision will bring the company closer to achieving its business goals. In addition, the company will provide expanded severance to the employees that were fired, and the HR department is busy implanting a support program which is helping these employees find a new job.”
Veev was founded in 2008 by CEO Amit Haller, CPO Ami Avrahami, and CRO Dafna Akiva in Tel Aviv and San Mateo, California. In 2017, the company turned its focus to modular construction, designing prefabricated panelized wall systems that are constructed off-site at its Union City factory.
Veev’s product solution controls the entire process, from permission to assembly and utility connections. The pre-inspected walls are delivered to the site with their cutting-edge plug-and-play system. Recently, Veev successfully completed a 78-unit housing project in conjunction with the City of San Jose in less than 90 days.
Veev’s mission is to make the construction process four times faster, greener, and at a cost, half that of the industry standard by designing, manufacturing, and assembling modular multifamily communities and auxiliary dwelling units (ADUs).
Material selection results in a 47 percent reduction in CO2e emissions compared to conventional construction materials, which means that a Veev home’s carbon footprint is nearly half that of a conventionally constructed home.
The company’s target for 2022 is to further reduce the carbon footprint of a Veev home by 25%. Veev claims that its housing materials, ranging from Light Gauge Steel (LGS) framing to High-Performance Surface (HPS), are lighter, stronger, and more sustainable than wood and drywall, with almost no waste.
Last November Veev established a partnership with Lennar to construct 102 attached houses in Northern California.
