Overview
- Zillow, which announced the cuts on Tuesday, will eliminate just over 500 roles—about 7% of its staff—with a WARN filing showing 91 of those layoffs in Washington that disproportionately affect senior and product engineering positions.
- The company reported second-quarter revenue of $772 million, an 18% year-over-year increase, but recorded a $36 million restructuring charge that pushed the quarter to a $4 million GAAP net loss.
- Zillow guided third-quarter revenue to $745 million–$760 million, citing a softer mortgage outlook and timing delays from its shift to a pay-at-close Preferred agent model, and the weaker near-term outlook sent the stock down in double digits.
- Executives announced leadership changes alongside the results, expanding CFO Jeremy Hofmann’s role to include COO, moving Jun Choo to an advisory role, and hiring Cassandra “Sandi” Knight as chief legal and policy officer.
- The cuts come as Zillow shifts revenue mix toward mortgages and rentals—mortgage revenue rose 75% to $84 million and rentals grew 31% to $209 million—and the company faces ongoing legal costs including an FTC antitrust trial set for later this month.