RICHMOND, Va. — CoStar Group has conducted another round of layoffs at its downtown Richmond headquarters, impacting workers on the company's Homes.com platform, according to multiple sources with knowledge of the company's actions. The exact number of affected employees is not yet known.
A CoStar Group spokesperson said the company was deploying advanced AI technologies designed to make the company more money, streamline processes, and improve the customer experience.
"To align our organization with these strategic objectives and position the company for continued success, we have made the difficult decision to eliminate certain roles within the organization," the spokesperson told CBS 6 when asked to comment on the layoffs. "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."
This marks the second major round of layoffs for the real estate technology company in less than a year. In February 2025, CoStar laid off more than 100 people from its downtown Richmond offices, citing the use of artificial intelligence as one reason for the cuts.
On Tuesday, one day before the most recent layoffs, CoStar announced "the launch of a transformative home search experience on Homes.com AI, powered by Microsoft Foundry."
"This innovation signals a shift as significant as the emergence of online search itself," Andy Florance, founder and chief executive officer of CoStar Group, said. "Home shopping is no longer constrained by rigid filters and disjointed online experiences. Instead, it has become dynamic, consultative, and deeply personalized – mirroring the way people naturally research and evaluate a home. We've spent years building the industry's richest property data and Homes AI harnesses that foundation to transform the consumer experience in a way that feels intuitive, human and incredibly powerful."
At the time of the 2025 layoffs, the company reported more than 2,500 employees in the Richmond area and said it planned to hire around 500 new salespeople for Homes.com and 100 new market analysts.
Watch: CoStar leans into AI, lays off 100+ workers from Richmond office (Feb. 2025)
"The company will complete its major one million-square-foot campus development along the James River in May 2026," CoStar said in its 2025 statement. "Upon completion, the campus will be nearly full and house 3,500 employees."
CoStar has faced pressure from investors due to declining stock prices. The company, which was trading at $94 per share on Aug. 1, 2025, is priced at around $48 at the time of publication.
CoStar said it was "committed to supporting our employees through this transition and will provide resources and assistance."
This is a developing story. Were you impacted by the CoStar layoffs? Email the CBS 6 Newsroom.
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