Zillow layoffs are eliminating more than 500 jobs at a company that just reported $772 million in quarterly revenue and described its latest financial performance as another period of strong results.
The Seattle based real estate technology company announced the restructuring on Tuesday, August 4. Washington employment records reviewed by the outlet show that 91 of the affected workers are based in Seattle. Workforce analytics firm Revelio Labs estimated that the cuts represent about seven percent of Zillow’s approximately 7,000 employees.
In a company blog post, Zillow CEO Jeremy Wacksman said the business needed a more disciplined structure as it attempts to expand.
“These changes are about ensuring we have a disciplined cost structure and getting more efficient, with the right people in the right positions,” Wacksman wrote.
Wacksman said Zillow has experienced “strong growth” and has exceeded some of its internal goals related to helping customers buy or rent homes. Still, he argued that the company cannot continue operating with its current organizational structure if it expects that growth to continue.
“We must ensure we are organized to continue winning into the future,” Wacksman said.
The timing of the Zillow layoffs makes the announcement especially striking. One day after the cuts were revealed, Zillow released financial results showing that its second quarter revenue increased 18 percent from the same period last year. According to Zillow’s official earnings report, the company generated $772 million in revenue during the three months ending June 30, exceeding the upper end of its previous forecast.
The earnings report shows growth across nearly every major part of the company. Zillow’s For Sale division generated $549 million, an increase of 14 percent from the previous year. Rentals revenue climbed 31 percent to $209 million, while mortgage revenue surged 75 percent to $84 million. Zillow said its purchase loan origination volume nearly doubled to $2.2 billion during the quarter.
Zillow did report a $4 million net loss under standard accounting rules. However, the company also reported $118 million in adjusted net income and $176 million in adjusted earnings before interest, taxes, depreciation, and amortization. Its financial disclosures show that $36 million in restructuring expenses contributed to the difference between the reported loss and its adjusted results.
The broader six month numbers make the contrast surrounding the Zillow layoffs even harder to ignore. Zillow reported $1.48 billion in revenue during the first half of 2026, along with $42 million in net income and $263 million in adjusted net income. The company also ended the second quarter with $682 million in cash and investments.
Zillow has also spent heavily repurchasing its own shares. The company said it bought back 5.6 million shares for $200 million during the second quarter. During the first quarter, Zillow spent another $626 million repurchasing 13.5 million shares, according to its first quarter earnings report. That means Zillow directed approximately $826 million toward share repurchases during the first six months of the year.
This is also not Zillow’s first round of job cuts in 2026. In January, GeekWire reported that the company dismissed approximately 200 employees following its annual performance review process. Zillow said those earlier reductions were connected to employee performance rather than market conditions or changes in the business.
Combined with the latest restructuring, Zillow has eliminated or announced plans to eliminate more than 700 positions this year. While the company has presented the two rounds differently, both have reduced headcount while revenue continued growing.
Revenue is not the same as profit, and Zillow has acknowledged signs of pressure. Its second quarter report shows that average monthly users declined two percent to 239 million, while total visits also fell two percent. The company pointed to broader housing market indicators that could signal a slower second half of the year.
Still, the Zillow layoffs are not unfolding against the backdrop of collapsing sales or an empty balance sheet. They are happening while the company reports billions in first half revenue, positive adjusted earnings, significant cash reserves, and hundreds of millions of dollars spent buying back shares. For the workers losing their jobs, Zillow’s push for greater efficiency carries a far more personal cost than the numbers displayed in an earnings report.
