Zillow Group will cut 300 jobs in Seattle as it seeks to reduce costs and address economic uncertainty.
TechCrunch was the first to report on these cuts. As of August, Zillow employed nearly 5800 people.
“As part of our normal business process, we continuously evaluate and responsibly manage our resources as we create digital solutions to make it easier for people to move,” a Zillow spokesperson said in an emailed statement to GeekWire. “This week, we’ve made the difficult — but necessary — decision to eliminate a small number of roles and will shift those resources to key growth areas around our housing super-app.
The company is still hiring in “key technology-related roles across the company,” the spokesperson added.
Numerous tech companies are cutting back on staff and slowing hiring. There is also ongoing inflation, which could lead to a recession. These developments follow a time of high growth in the software industry during the Pandemic.
Rising mortgage rates are affecting real estate businesses, and their sales have slowed. Redfin, another Seattle real estate giant, laid off 8% of its workforce in June, citing “market conditions.”
In August, Zillow said it expected total industry transaction dollar volume to “meaningfully contract year-over-year” in the second half of 2022 due to housing trends. According to Zillow, revenue from the core Premier Agent business unit is expected to decrease by more than 20% in the third quarter. Company cited lower home buying demand as a result of higher interest rates. However, home appreciation was lower due to softening demand for homes and increasing inventory.
Zillow releases its third quarter results for November 2.
The company slashed about 25% of its workforce last year after it decided to shut down its own iBuyer business, Zillow Offers, marking a surprising end to an ambitious home-flipping bet that also resulted in a $405 million write-down. Zillow claimed it could not accurately predict home prices and that the business required too many capital resources.