Seattle Zillow Cuts 200 Jobs, Housing Tech Jitters

What Happened in the Seattle Zillow Layoffs (200 Cuts)?

Although Zillow continued posting job openings, the Seattle-based real estate company cut about 200 employees in recent weeks leading up to Jan. 30, 2026. Another sign of the region’s broader tech pullback came as Amazon 16,000-job cut headlines fueled white-collar job anxiety across Seattle.

The reduction equaled roughly 2–3% of its workforce. The cuts also arrive as Zillow faces heightened scrutiny tied to its New Listing Rule and broader antitrust tensions reshaping real estate tech.

Scope of disruption

Cuts were reported across roles, with no single business segment targeted.

Tracker data described impacts on white-collar and factory workers.

Key figures:

• Affected: about 200
• Prior cuts: 23 in 2023, 300 in 2022, 2,000 in 2021

Confirmation and fallout

Axios reported the layoffs and cited spokesperson Chrissy Roebuck confirming the action.

The move landed amid Seattle tech layoffs and media coverage.

Zillow revenue was up 16% while postings stayed steady.

Investor reaction focused on tech jitters and the lack of a WARN notice.

Why Did Zillow Layoffs Happen During Performance Reviews?

Zillow said the roughly 200 terminations that surfaced around Jan. 30, 2026, were tied to its standard annual performance review cycle, not a restructuring plan.

The roughly 200 exits amounted to about 3% of workforce.

The timing still resembled a layoff because the actions clustered around review deadlines.

Performance Review Link

A spokesperson described the separations as performance-related and consistent with the company’s typical annual process.

Managers often use cross-team calibration meetings, where calibration bias can turn small rating differences into job consequences. In those sessions, groupthink and the HIPPO effect can crowd out dissenting views, making borderline decisions feel inevitable.

Why It Still Looked Like Layoffs

Zillow reported Q3 2025 revenue of $676 million and $10 million in net income, which undercut a cost-cutting narrative.

Steady job postings across mortgage, rentals, and software added to confusion, but the company denied any strategic pivot.

Executives pointed to growth.

Who Was Impacted by the Zillow Layoffs and What Happens Next?

The company’s late January 2026 terminations removed about 200 employees, roughly 2 to 3 percent of the workforce.

Impacts were reported as widespread rather than confined to one unit.

Companywide Disruption

Zillow said the cuts were performance-related decisions tied to annual reviews.

No departments were named.

No WARN notice appeared.

That suggests the terminations did not meet the threshold for a mass layoff filing.

The timing also comes as Google’s new listings inside search results heighten pressure on real estate portals that rely on online discovery and lead generation.

Next Steps

Zillow kept hundreds of job postings active and cited 16 percent revenue growth.

That signaling pointed to overall stability.

Departing staff face career shifts.

Zillow has shared little detail on severance or reskilling programs.

Zillow also indicated no additional performance-based reductions are currently planned this year.

Immediate Outlook

• Badges were returned in Seattle, and workloads were reassigned overnight.
• Recruiters screened candidates for open roles as exits closed.
• Housing demand and small business confidence dipped with lost paychecks.

How Do Zillow Layoffs Compare to Other Seattle Tech Layoffs?

Against a backdrop of disrupted teams and reassigned workloads, the scale of Zillow’s late January 2026 job cuts looks modest next to other Seattle tech layoffs.

Zillow’s roughly 200 roles were trimmed during performance reviews, not a broad business exit.

Meanwhile, Seattle’s housing deficit of 71,060 homes is worsening as thousands of development projects face delays.

Bigger Cuts Intensify Regional Anxiety

Amazon reported 16,000 corporate layoffs, and 30,000 since October 2024.

Meta filed notice for 331 King County positions effective March 20, 2026.

Expedia set 162 permanent dismissals starting February 1, 2026.

Signals for Investor Sentiment and Market Perception

Seattle area firms announced over 30,000 reductions in 2025, and the unemployment rate reached 5.1% in November.

Even as Amazon, Microsoft, Google, and Meta keep hiring for AI infrastructure, repeated cuts pressure investor sentiment and market perception of stability.

Will Seattle Zillow Layoffs Affect Housing Demand in 2026?

Although roughly 200 Seattle roles were eliminated during performance reviews, the immediate effect on 2026 housing demand remains unproven in available market data.

Most indicators reflect affordability easing and inventory rising into early 2026.

Separate from tech payroll shifts, Seattle’s 400M funding gap for major infrastructure and transit-linked plans could delay mixed-use projects that support housing supply.

Demand Signals

Late 2025 values ran about 6 to 7 percent lower year over year, near the low $800,000s.

Pending sales and purchase applications improved.

Orphe Divounguy says the market stays soft and buyer favorable into 2026.

These shifts track supply and rates rather than payroll cuts.

Disruption Risks

Tech caution can suppress market sentiment and delay upgrades amid lock in.

Entry-level shortages still limit volume.

Watch Points

• Broader Seattle layoffs
• Mortgage rate stability
• Flat price trends

Demand may normalize without a Zillow link.

Assessment

Zillow’s Seattle-area layoffs underscored continued volatility in housing technology, as rates and listing volumes remain uneven.

The timing alongside performance reviews signaled tighter cost discipline and shifting product priorities.

Affected teams face adjustment periods, while remaining staff absorb reorganized workloads and roadmaps.

Across Seattle, similar reductions at other tech firms reinforced caution in hiring and investment.

For 2026, the cuts are unlikely to directly change housing demand, but they may slow platform innovations and reach.

https://www.unitedstatesrealestateinvestor.com/seattle-zillow-cuts-200-jobs-housing-tech-jitters/?fsp_sid=31000