CoStar Group cuts jobs amid AI rollout and Homes.com focus

CoStar Group has undergone a round of layoffs. A spokesperson for the Andy Florance-helmed firm confirmed news of the layoffs Wednesday afternoon.

According to a company spokesperson, the decision to “eliminate certain roles within the organization,” was made in an effort to “align our organization with these strategic objectives and position the company for continued success.”

“This was not a decision taken lightly, and we are deeply appreciative of the contributions that each affected team member has made during this transformative period,” the spokesperson added. “We are committed to supporting our employees through this transition and will provide resources and assistance. Our focus remains on building a strong, sustainable company that serves our customers and drives innovation in the industry.”

The company has yet to comment on the scale and scope of the layoffs. 

“Over the past two years, we have experienced a period of rapid growth following the initial investment phase and the successful launch of Homes.com,” the spokesperson wrote in an email. “This momentum has enabled us to reach important milestones and expand our services to better meet the needs of our customers.”

As CoStar looks to the future, central to its growth strategy is the deployment of “advanced AI technologies” across the entire company.

“These initiatives are designed to accelerate revenue growth and operational efficiencies, enabling us to streamline processes, elevate the customer experience and unlock innovative solutions throughout our entire portfolio,” the spokesperson wrote.

These layoffs come as CoStar faces pressure from activist investors to divest or shutdown Homes.com amid weaker than initially expected financial results. Despite this pressure, CoStar has maintained that it has no plans to divest of or shutdown Homes.com.

In a response to activist investor demands, CoStar has said that “scaling Homes.com has already generated positive network effects for CoStar Group, including increased traffic and leads at Apartments.com and the ongoing integration of new technology across the Company, particularly in AI.” 

“Our 2026 and long-term guidance reflect our confidence in our ability to repeat our prior successes and to unlock the significant potential of our digital ecosystem for stockholders. Our guidance reflects the benefit of initiatives across our core platform that would not be possible without Homes.com,” the company has stated.

CoStar has forecasted profitability for Homes.com by 2030.