Zillow Cuts 500 Jobs Ahead of Q2 Earnings Report

Zillow is laying off just over 500 employees as it makes organizational changes, Zillow CEO Jeremy Wacksman said in a Tuesday (Aug. 4) blog post.

The reduction amounts to about 7% of Zillow’s workforce. As of March 31, Zillow had 7,058 employees, according to a company filing with the Securities and Exchange Commission (SEC).

Wacksman said in the post that Zillow’s platform for renting, buying and selling homes continues to outperform its category, despite a flat housing market, and that the experience it is building is producing results for the company and its customers.

“But, along with that strong growth, we must ensure we are organized to continue winning into the future,” Wacksman said. “Continuing to grow at scale requires us to work differently than we do today. In support of that goal, we’ve made changes to our organization that require the elimination of some roles today. These changes are about ensuring we have a disciplined cost structure and getting more efficient, with the right people in the right positions.”

Zillow is scheduled to announce its second-quarter results Wednesday (Aug. 5).

When reporting its first-quarter results in May, Zillow said its revenue was up 18% year over year to $708 million during a quarter in which the residential real estate industry grew by 2%.

Zillow said its For Sale revenue was up 12% year over year to $514 million and its Rentals revenue increased 42% year over year to $183 million.

“Zillow’s integrated platform is delivering meaningful value for buyers, sellers, renters and real estate professionals alike,” Wacksman said in a May 6 press release announcing the first-quarter results. “We’re embedding AI throughout the real estate experience in ways that make Zillow increasingly indispensable, and we’re innovating with speed and intention. Zillow’s strong Q1 results reflect the consistency of our execution, the strength of our brand, our audience engagement and the durability of our multi-year strategy.”

Zillow announced in November that it added a tool called CreditClimb that lets renters build credit through rent payments by having their on-time payments reported to the three major credit bureaus for $20 per year.