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 disciplined cost structure and getting more efficient, with the right people in the right positions,” Wacksman said. “The opportunity in front of us is as large as it’s ever been, and we’re building toward it with urgency and a structure that will get us there.”
The news comes as digital real estate giant prepares to report second-quarter 2026 earnings Wednesday after the closing bell.
The move marks Zillow’s second round of layoffs just this year, and the larger of the two. It previously cut 200 roles, or 3% of its workforce, in January, after a round of annual performance reviews.
Shares of Zillow Group, Inc (Nasdaq: Z) were trading down less than 1% on Wednesday afternoon.
Zillow and rival Compass are currently battling it out for dominance over the online real estate market. Last year, Compass, one of the largest brokerages in the country, filed a complaint against Zillow in New York federal court alleging Zillow is engaging in “anticompetitive tactics” and violating antitrust laws, Fast Company previously reported.
The current layoffs come after Zillow reported strong first-quarter earnings, with revenue up 18% year-over-year to $708 million, and net income growing to $46 million from $8 million a year earlier, GeekWire reported.