CoStar Group, the Arlington-based real estate analytics and marketing company with a major presence in Richmond, confirmed that it has reduced its workforce, including positions affecting employees in the region.
It did not say how many employees were affected. Several employees who identified themselves as working in Richmond posted on social media that they had been laid off. The roles referenced included video production, content writing and editing tied to Homes.com’s neighborhood and property coverage.
The company, which owns Homes.com and Apartments.com, employs thousands of people in the Richmond area, many of them connected to its Homes.com marketplace operations. It acquired Homes.com from Norfolk-based Dominion Enterprises in 2021.
In a statement, a company spokesperson said the reductions were part of a broader strategy as CoStar shifts more heavily toward artificial intelligence.
“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 said. “This momentum has enabled us to reach important milestones and expand our services to better meet the needs of our customers.”
Some of those eliminated jobs were crucial in building up articles and video content for thousands of neighborhoods across the country.
The spokesperson said integrating AI technologies across CoStar’s operations will be “central” to the company’s strategy moving forward, describing the effort 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 said.
The company made similar workforce reductions last year, eliminating about 120 roles while also announcing plans to hire roughly 1,000 employees in sales, market analytics, research and technology.
Earlier this year, company executives said that CoStar would reduce its net investment in Homes.com by approximately $300 million this year.
Meanwhile, CoStar’s 21-story office tower under construction on South Fifth Street near Brown’s Island in downtown Richmond is expected to open this spring. The company has previously said it anticipates employing at least 3,500 people there once the building is fully operational.
On Feb. 17, CoStar launched a new artificial intelligence tool called Homes AI, designed to allow homebuyers to conduct conversational searches for properties.
“This innovation signals a shift as significant as the emergence of online search itself,” founder and CEO Andy Florance said in a statement. “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.”
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