Today, one day before the release of its Q2 earnings statement, Zillow announced it’s laying off just over 500 employees.
The announcement came even as Zillow keeps posting double-digit revenue growth, with the new cuts following a round of layoffs earlier this year.
Here’s what CEO Jeremy Wacksman said about the decision, and the numbers behind Zillow’s timing.
Why Zillow Is Laying Off 500+ Employees
Wacksman published the announcement directly on Zillow’s site on August 4, in a post titled “How we’re organizing for the path ahead.”
Just over 500 employees are leaving the company. Wacksman framed the decision as part of a broader organizational shift, one built around cost discipline and efficiency as Zillow grows.
In the post, Wacksman laid out the reasoning:
“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.”
Wacksman also drew a line between the cuts and Zillow’s broader direction. He said the company’s mission and purpose “remain steadfast,” pointing to the trust Zillow has built with renters, buyers, sellers and real estate professionals over the past 20 years.
A Second Round of Cuts and a Stock Price Under Pressure
Today’s announcement isn’t Zillow’s first round of layoffs this year. The company cut about 200 roles in late January, a round tied to performance reviews rather than the organizational restructuring cited today.
Zillow has posted double-digit revenue growth for several quarters running, with mortgages and rentals driving much of that gain.
Zillow’s stock is down more than 47% this year. CFO Jeremy Hofmann called that decline a “dislocation,” or temporary mispricing, when he spoke with investors back in May. Some law firms are now recruiting shareholders for a proposed class-action lawsuit tied to the stock’s performance.
Zillow reports its full Q2 earnings tomorrow. Wall Street analysts expect the company to post roughly $758 million in revenue, a figure that falls in the middle of the revenue range Zillow itself has projected for the quarter.
That report will likely bring more detail on which teams were affected and what the cuts mean for the company’s next moves.
