Redfin lays off 450 employees following Zillow agreement - Puget Sound Business Journal

Redfin is implementing significant layoffs, affecting around 450 employees in its rental business following a newly forged partnership with Zillow. This collaboration designates Zillow as the exclusive provider of rental listings for multifamily properties with at least 25 units on Redfin's platform, intended to broaden the exposure of such listings. The layoffs, which will take place over several months, are expected to cost Redfin between $18 million and $21 million, contributing to a total of 4,693 layoffs reported by the end of 2023. With the real estate landscape becoming increasingly competitive, this partnership is seen as a strategic move to enhance Redfin’s rental offerings while providing Zillow with greater access to potential leads. The partnership will officially launch this spring, with Zillow paying Redfin $100 million upfront and additional fees per lead delivered.

Despite the painful nature of such layoffs, Redfin emphasizes that this decision is ultimately in the best interest of its customers and the company's long-term viability. The company generated $278 million in revenue in the third quarter of 2024, although it also reported a net loss of $33. 8 million. As Redfin continues to adapt to market changes, maintaining competitive advantages remains a priority.