Zillow to Stop Buying Homes; Layoff 25% of Workforce

(Seattle, WA) -- Seattle-based Zillow is getting out of the home-buying and re-selling business--cutting 25% of its workforce. The online real estate marketplace said in its quarterly earnings report Tuesday it will see a total write-down of more than $540 million as a result of closing its Zillow Offers division.

Last month, Zillow stopped buying homes because it bought homes due to higher prices plus increased costs and turnaround times for renovations. By shutting down Zillow Offers, the company will cut about 2,000.