On the same day, Redfin announced a new partnership to syndicate Zillow rental lists in multi-family buildings, saying the company would remove the position of around 450 employees.
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Redfin has cut 450 employees within its rental division this week and partnered with Portal Powerhouse Zillow on a rental list, the company said in a new filing that also includes details of the partnership.
The layoff follows a cut cut created by Redfin at its headquarters last month.
The company made an announcement in a filing with the U.S. Securities and Exchange Commission on Tuesday evening, after saying it would syndicate Zillow’s multi-family rental list to Redfin and its site, Rent.com and ApartmentGuide.com.
“This restructuring consists primarily of eliminating the role or support of certain employees within the rental segment between February and July 2025,” Redfin said in the SEC filing. . “We expect this restructuring to affect approximately 450 rental employees.”
The company said the majority of the costs associated with the restructuring would take place by the end of the second quarter, with the expected spending between $18 million and $21 million on the restructuring.
Meanwhile, Redfin has revealed that Zillow has agreed to pay $100 million to Redfin’s rental site for syndication rights to the list of multifamily buildings with over 25 units.
As part of the transaction, Zillow will also pay to receive leads generated through syndication for up to nine years, Zillow said in its own SEC filing.
In 2024, Zillow grew to 37,000 to 50,000 multifamily properties on the platform. The company told investors that it believes it can grow to 140,000 real estate nationwide.
Shake-ups occur when real estate portals fight for the attention of people who shop where they live.
Zillow’s rental segment has 1.9 million active rental lists at the end of 2024, telling investors on Tuesday when they announced their fourth quarter and last year’s performance.
The company’s rental audience has grown to an average of 29 million unique monthly visitors. This is beyond CoStar, the closest apartment complex.
As rental lists are not organized in the same way as homes for sale, the portal is fighting for control in the space, and by compiling as many rental lists as possible in one place, it is effectively multiple. It acts like a listing service.
Zillow signed a similar partnership with Portal Comperator Realtor.com last March. Details about how much Zillow paid will not be available immediately. Realtor.com Parent Move, Inc. News Corp, which owns the company, said the partnership helped the company offset other real estate-related revenue declines, SEC Filings shows.
Future tenants will also add potential value to the portal, and Zillow agrees to pay Redfin to leads on Redfin rental networks for at least five years, using the option to update twice with a two-year extension. did.
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