Zillow CEO Fires 500 Despite Record Profits, Citing 'Efficiency'—But the Real Reason Is Stock Buybacks
CEO Just Fired 500 People Because He Says Zillow Is More Efficient Without Them
Zillow just laid off 500 people—7% of its workforce—days before reporting its best financial results in years. The CEO claims it's about efficiency, but the numbers tell a different story: the company spent $626 million on stock buybacks in Q1 alone, nearly draining its cash reserves. This piece argues the layoffs are really about reducing share-based compensation to boost the stock price, not about making the company more efficient.
A company that voluntarily spent forty percent of its cash reserve on share repurchases in a single quarter cannot credibly describe a layoff four months later as a matter of cost necessity.