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Zillow lays off 25 percent of workforce

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Online valuation and listings site announced today it is laying off 40 people, or 25 percent of the company's workforce, in order to cut expenses in anticipation of a prolonged recession."Unprecedented economic events ... have made a prolonged recession likely, in our judgment," said Rich Barton, Zillow founder, chairman and chief executive officer, in a post on the company blog. "We are a young company that is not yet making a profit. Despite having sizable cash reserves, we deemed the responsible course was to meaningfully reduce expenses, so that Zillow emerges from the other side of the recession in a very strong position, even if the recession lasts many years." Barton said the decision to cut staff was a difficult one because although the company's revenues do not yet cover expenses, Zillow continues to grow. The 5.4 million unique visitors to the site in September represented a 42 percent increase over the same time last year, and revenue is growin...