Industry News

ZipRealty to cut jobs on housing woes

Brokerage company lowers earnings guidance for 2007

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Citing the continued slowdown and uncertainty in the nation's housing markets, ZipRealty today said it plans to eliminate jobs and take other cost-cutting measures, and lowered its earnings guidance for 2007. Some real estate markets have been hit hard this year by slowing sales and tightened lending standards, which have squeezed the pool of buyers and softened demand. The National Association of Realtors this week said it expects home sales to fall 10.8 percent and prices to fall 1.3 percent this year. ZipRealty's management expects it can lower the company's current operating expense structure by about $4 million annually, the company said in a statement. "The majority of these reductions come from the elimination of positions in the corporate headquarters and the field offices, and the remainder is expected to come from improvements in operating efficiencies," the company said. The real estate company did not specify how many jobs would be affected. As a result of cutting staff, t...