Zillow Group Inc. confirmed more layoffs on Wednesday, as the real estate services company faces a slowdown in the housing market.
Bloomberg News reported On Wednesday Zillow fired 300 employees, or about 5% of its workforce. Zillow confirmed the cut in an email to MarketWatch.
A Zillow spokesperson said, “This week, we made the difficult – but necessary – decision to eliminate a small number of roles and move those resources to key development areas around our housing super-app. ” “We are still hiring in key technology-related roles across the company.”
The housing market has been noticeably bearish in recent months as the Fed has raised interest rates sharply, putting mortgages out of reach for many potential first-time home buyers. Mortgage applications fell 1.7% this week, as mortgage rates dropped 7%, the highest since 2001, according to Wednesday data from the Mortgage Bankers Association. New home sales fell 10.9 percent in September, according to data from the Commerce Department, which said new home sales declined 17.6 percent year over year.
Earlier this year, Zillow said it expects to cut its workforce by 25% this year as it opens up its disastrous home-buying business.
Zillow isn’t the only real-estate company to cut employees recently; Rival Redfin RDFN,
It laid off about 500 employees in June, and online real-estate brokerage Compass Inc. comp,
announced it would cut about 450 jobs, or 10% of its workforce, in September.
Zillow stock has been slammed this year, along with Class A shares ZG,
51% drop and Class C shares Z,
52% off the S&P 500’s SPX,
Loss of about 20% in 2022.
Credit: www.marketwatch.com /