Key facts
- Zillow laid off over 500 employees, representing approximately 7% of its workforce.
- Severance packages include three weeks of base pay plus two additional weeks per year of service, up to 21 weeks.
- Employees receive a lump sum payment equivalent to six months of COBRA coverage.
- Impacted roles included director, principal, manager, and senior-level positions.
- At least two employees on maternity leave were among those terminated.
- Zillow reported $772 million in revenue for the second quarter of 2026, an 18% year-over-year increase.
Zillow has provided details regarding its recent layoff of over 500 employees, which represents approximately 7% of its workforce. The company has termed this an "organizational restructuring" aimed at improving efficiency and supporting business investments.
Impacted employees received an email from Zillow's Human Resources Department outlining their termination terms. They were placed on administrative leave with pay and benefits through a specified termination date. The company reserved the right to recall employees during this period. Severance packages include three weeks of base pay plus two additional weeks for every full year of service, capped at 21 weeks. Additionally, primary insurance subscribers will receive a lump sum payment equivalent to six months of COBRA coverage costs for themselves and dependents.
Selection for termination was based on factors such as position elimination and work performance, according to an employee FAQ. A Washington State WARN schedule indicated that affected roles included business intelligence manager, director of engineering, director of legal, and senior manager positions across various departments, with 91 state-based employees impacted. Six held director-level roles, and 49 held senior-level positions.
Sources confirmed that at least two employees on maternity leave were terminated. One described the experience as "deeply impersonal and profoundly jarring," expressing dismay at being laid off during a period intended for family care. Zillow's spokesperson declined further comment beyond a previous blog post by CEO Jeremy Wacksman, who described the decision as difficult and reflective of strategic progress and scaling requirements.
Despite the layoffs, Zillow reported strong revenue growth in the second quarter of 2026, with total revenue reaching $772 million, an 18% increase year-over-year. The for-sale segment grew 14%, residential segment 7%, mortgage revenue 75%, and rentals segment 31%. However, the company posted a net loss of $4 million for the quarter, a decrease from a net income of $2 million in the prior year. For the six months ending June 30, 2026, Zillow recorded $42 million in net income.