SEATTLE — Zillow announced Tuesday it’s cutting 7% of its workforce, as a lukewarm housing market continues to weigh down its real estate business.

Just over 500 employees will leave the real estate giant, which is based in Seattle but employs remote workers nationwide.

CEO Jeremy Wacksman said in a statement on Zillow’s website that the company has outperformed “despite a housing market that has been essentially flat.”

Home sales across the nation have softened amid economic uncertainty and high mortgage rates. Still, Zillow has grown this year as the company focuses on improving its rentals business and rolls out artificial intelligence tools. Zillow saw its revenue rise 18% to $708 million year-over-year in the last quarter.

“But, along with that strong growth, we must ensure we are organized to continue winning into the future,” Wacksman said. “Continuing to grow at scale requires us to work differently than we do today.”

With these layoffs and resulting changes, the CEO said, Zillow aims to ensure a “disciplined cost structure” and more efficiency, “with the right people in the right positions.”

The 500 layoffs come after Zillow terminated 200 employees in January “whose performance did not meet expectations.” A company spokesperson said the earlier terminations were not layoffs and not connected to market conditions or recent business developments.

Zillow is set to release its second-quarter earnings on Wednesday.

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