Zillow trims workforce by 7% as it gears up for Q2 earnings

Zillow announced layoffs affecting more than 500 employees, roughly 7% of its staff, in a move aimed at tightening its cost structure ahead of its second‑quarter earnings report. CEO Jeremy Wacksman said the cuts are part of a “disciplined approach to cost management” to keep the company competitive as the housing market remains flat.

The layoffs follow a smaller reduction of about 200 workers in January and come amid several legal challenges. A federal judge dismissed a class‑action suit alleging Zillow steered buyers to its own loan product, while the Federal Trade Commission is pursuing a case against Zillow’s $100 million rental‑listing partnership with Redfin, accusing it of suppressing competition. The FTC lawsuit is set for trial this month. Zillow also faces a hearing over a dispute with Compass and Midwest Real Estate Data regarding listing access.

Zillow’s Q2 earnings are scheduled for early August, and the company highlighted strong performance in its integrated platform for buying, selling, and renting homes, including AI‑driven tools such as the recently launched CreditClimb service for renters.