First Redfin, and now Zillow:
This week we are reducing our workforce by 25%. This was an incredibly painful decision for me and the leadership team, but, in the end, we concluded that we had no choice but to securely batten down the hatches as we sail into a major economic storm.
The unprecedented economic events that are playing out on a global stage began in our own industry and have made a prolonged recession likely, in our judgment. We are a young company that is not yet making a profit. Despite having sizeable cash reserves, we deemed the responsible course was to meaningfully reduce expenses, so that Zillow emerges from the other side of the recession in a very strong position, even if the recession lasts many years.
I’d like to extend my condolences to the now-former Zillow folks as well. Tough times.
Local tech reporter John Cook puts the layoff total at 40 employees. Now is apparently not a good time to be in the online real estate business.