Zillow Lays Off 500 Employees Amid Flat Housing Market
Zillow is cutting 7% of its workforce to reduce costs and improve efficiency despite reporting an 18% increase in quarterly revenue.
Zillow announced on Tuesday the layoff of more than 500 employees, representing 7% of its total workforce. The company cited a flat housing market, high mortgage rates, and general economic uncertainty as the primary drivers for the reductions.
The layoffs come despite strong financial growth, with Zillow reporting a year-over-year revenue increase of 18% to $708 million in the last quarter. This growth was attributed to the expansion of its rentals business and the implementation of AI tools.
CEO Jeremy Wacksman stated the cuts are necessary to maintain a disciplined cost structure and organizational efficiency. These reductions follow an earlier round of cuts in January, when the company terminated 200 employees for performance reasons, which Zillow maintains was a separate matter from current market conditions.
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