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# Zillow calls itself “AI-native.” It just cut 500 jobs and won’t say whether AI was the reason.

**[The Next Web](https://daily.dev/sources/tnw)** · 3 min read · 0 upvotes · 0 comments

## Summary

Zillow laid off more than 500 employees — about 7% of its workforce and its largest cut of the year — one day before reporting quarterly earnings. The move is notable because Zillow has been publicly positioning itself as an 'AI-native' company, yet refuses to say whether AI contributed to the decision. The company is financially healthy, with Q1 revenue up 18% and profit jumping from $8m to $46m year-over-year, making the cuts look more like a cost-squeeze than a rescue. The silence on AI mirrors a broader pattern in tech where companies adopt AI-native branding while avoiding direct attribution of job cuts to automation. Zillow also faces a 47% share price drop, a proposed class action, and an FTC antitrust trial, adding further pressure beyond efficiency goals.

## Full article

daily.dev links to this article rather than hosting it. Read it at the original source: <https://thenextweb.com/news/zillow-500-layoffs-largest-of-year-ai-native>

## Questions this post answers

### How many jobs did Zillow cut in its 2026 layoffs and why?

Zillow laid off more than 500 employees, about 7% of its staff, its largest cut of the year, announced one day before quarterly earnings. CEO Jeremy Wacksman framed it as ensuring a disciplined cost structure and getting more efficient, despite first-quarter revenue rising 18% to $708m and profit jumping to $46m from $8m a year earlier. The company would not say whether AI contributed to the decision.

_Track how AI is reshaping hiring and layoff decisions across the industry on daily.dev._

### Is Zillow's financial performance struggling before its 2026 layoffs?

No, Zillow was outperforming the market when it cut over 500 jobs. First-quarter revenue rose 18% to $708m against an industry growing just 2%, and profit jumped to $46m from $8m a year earlier. Despite this, shares had fallen more than 47% over the year, which the finance chief attributed to a temporary market mispricing rather than fundamentals.

_Follow how strong earnings and layoffs coexist across tech companies on daily.dev._

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---

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