‘Flat housing market’ forces Zillow layoffs: Real estate company sheds 7% of jobs in second round of cuts this year
Zillow plans to lay off “just over 500 employees,” or about 7% of its workforce, as part of a company-wide restructuring. The Seattle-based online real estate company had 7,058 employees as of March 31 . CEO Jeremy Wacksman made the announcement in a blog post on Tuesday, citing a “flat housing market” and “what is required of us to grow at scale.” “These changes are about ensuring we have a…
Zillow, the Seattle-based online real estate company, has announced plans to lay off approximately 500 employees, comprising around 7% of its workforce. This move is part of a broader company-wide restructuring, as CEO Jeremy Wacksman cited a "flat housing market" and the need to "grow at scale" as reasons for the decision. Wacksman stated that these changes aim to establish a disciplined cost structure and enhance efficiency, ensuring the company has the right personnel in the appropriate positions.
The announcement follows Zillow's second round of layoffs this year, with the previous round in January cutting 200 positions, or 3% of its workforce, after a series of annual performance evaluations. The company's shares experienced a slight decline of less than 1% in trading on Wednesday. Zillow is currently competing with fellow market leader Compass for dominance in the digital real estate industry.
Earlier this year, Compass filed a complaint against Zillow in a New York federal court, alleging the latter's engagement in "anticompetitive tactics" and potential antitrust violations. Despite the recent layoffs, Zillow reported robust first-quarter earnings, with revenue increasing by 18% year-over-year to $708 million and net income expanding to $46 million from $8 million a year ago.
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