03-03-2025
CoStar cuts Richmond jobs the same day it announces local hiring spree
CoStar laid off about 120 Richmond-area workers Thursday, the Times-Dispatch reports.
The big picture: The cuts came the same day the NoVa-based real estate firm announced in a news release that it was planning to hire 1,000 new workers this year, primarily in Richmond.
State of play: Layoffs targeted employees across departments, CoStar's chief human resources officer Michael Desmarais told RTD.
Some local workers who lost their jobs were writers, editors, production staff members and senior managers, the Times-Dispatch reports.
What they're saying: The company said in its hiring blitz announcement that it "expects to eliminate roles in 2025 from efficiencies gained by using AI and reallocate those resources into other areas."
"The company also anticipates reducing some roles during normal annual performance management," it continued.
A CoStar spokesperson declined Axios' questions about how many people were laid off, but said, "We do not take decisions that affect the daily lives of our employees lightly."
Zoom out: CoStar, which employs just over 2,350 workers in Richmond, is building a 5th Street office tower and downtown campus.
The projects are expected to be completed in 2026.
Catch up quick: Last year, the city approved a grant giving CoStar Group several million dollars in tax breaks on its downtown office tower in exchange for meeting hiring minimums, the Times-Dispatch reported.
The real estate firm also received nearly $5 million in state funding last year toward its new Arlington HQ.
CoStar spent $35 million on Super Bowl ads this year, according to industry publication Ad Age.
This is a developing story. Check back for updates.
