Zillow’s third quarter earnings report announced the closure of its home buying unit, Offers, after the sister business produced a net loss at the company as a result of operational backlog and an unpredictable market, says CNBC.
As part of the Offers closure, Zillow will be leaving the home-flipping market and eliminating 25% of its workforce, citing capacity issues and a labor-and-supply constrained economy as major factors in the company’s decision.
Zillow, the digital real estate company, said on Tuesday that it’s exiting Offers, its business that buys and flips homes, and eliminating 25% of its workforce.
The announcement was attached to Zillow’s third-quarter earnings report. The company’s revenue and earnings missed analysts’ estimates.
“We’ve determined the unpredictability in forecasting home prices far exceeds what we anticipated,” Zillow CEO Rich Barton said in the release. “Continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility.”
