Seattle-based online real estate company Zillow Group laid off more than 500 employees Tuesday, about 7% of its global workforce, its second and largest round of cuts this year.
The layoffs are about “ensuring we have a disciplined cost structure and getting more efficient, with the right people in the right positions,” Zillow Group CEO Jeremy Wacksman said in a company blog post announcing the cuts. He said the decision reflects “both the strides we’re making in our strategy and the reality of what is required of us to grow at scale.”
He added, “Continuing to grow at scale requires us to work differently than we do today.”
Wacksman told real estate executives at the T3 Leadership Summit in April that Zillow employees were being retrained to use AI in their jobs, with gains that “are small, but they’re compounding,” as reported by Real Estate News.
The company hasn’t said whether AI factored directly into Tuesday’s cuts. It also didn’t disclose which teams were affected, how the cuts will hit its Seattle headquarters, or what severance employees will receive. GeekWire has contacted Zillow Goup for more information.
Zillow Group will report second-quarter earnings Wednesday afternoon. The company’s business has been growing, defying a sluggish housing market. Its first-quarter revenue rose 18% year-over-year to $708 million, while the residential real estate industry grew 2%, according to NAR. Net income climbed to $46 million from $8 million a year earlier.
Wacksman indicated Tuesday that the company is still bucking the trend: “We continue to outperform the category, despite a housing market that has been essentially flat,” he wrote.
However, the company has been spending nearly as fast as it has been growing, on rental listings, loan officers for Zillow Home Loans, advertising and legal bills. Execs told investors in May that the spending would ease up in the second half of the year. Cutting payroll is one way to make that happen, and Zillow’s earnings guidance tomorrow could reflect that.
As for those legal bills: Zillow is headed to trial later this month in an FTC antitrust case over the $100 million deal the company struck in early 2025 to become the exclusive provider of multifamily rental listings on Redfin’s websites.
Zillow cut about 200 jobs in January, but characterized those as performance-related and part of its annual review cycle. It had 7,058 employees as of March 31, down just 10 positions from the end of 2025, meaning it had largely backfilled January’s cuts before Tuesday.
It’s part of a wave of cuts and consolidation in real estate portals and property tech. CoStar has cut its Homes.com inside-sales team by nearly 40% in recent months. Better founder Vishal Garg stepped down as CEO Monday as the mortgage company pushed to cut costs.
Rocket Companies acquired Seattle-based Redfin for $1.75 billion in an all-stock deal that closed in July 2025, then cut about 2% of its combined workforce weeks later. Longtime Redfin CEO Glenn Kelman departed in January after 20 years leading the company.
Along with its flagship Zillow portal, Zillow Group’s brands include Trulia, StreetEasy, HotPads and Out East, plus agent software products Follow Up Boss, ShowingTime and dotloop.
Read the full article here