CoStar eliminates some jobs, but plans to add about 1,000 jobs

Arlington County-based real estate data and analytics company CoStar Group on Thursday announced several substantial changes to its Virginia workforce, including the elimination of some jobs and the addition of others.

The company said it plans to fill more than 1,000 new positions predominantly in Richmond, including 500 new Homes.com sales professionals. CoStar said that its Homes.com network is now one of the two most heavily trafficked real estate collections of websites in the U.S., drawing an average monthly audience of 110 million unique visitors in the fourth quarter of 2024, according to Google Analytics.

Other new positions include analysts and additional roles in development, technology, artificial intelligence, video production, real estate writing, news, management and other roles.

But the news wasn’t positive for all CoStar staff, as the company said it “expects to eliminate roles in 2025 from efficiencies gained by using AI and reallocate those resources into other areas.” CoStar also said it anticipates reducing some roles during normal annual performance management. According to a news release from the company, these job eliminations are part of CoStar’s commitment to “efficient allocation of its shareholders’ resources.”

The company did not say how many people were being laid off.

“We do not take decisions that affect the daily lives of our employees lightly,” a CoStar Group spokesperson said in a statement. “We value and appreciate all our employees and the work they have done to support CoStar Group’s success and growth to-date. Impacted employees have been offered the appropriate resources to help them through this transition.”

In its release, CoStar said that it would aim to maximize revenue generation, regularly evaluate performance and pursue advancements with AI as part of an ongoing effort to enhance productivity and efficiency.

“CoStar Group sees rapidly growing value in leveraging artificial intelligence to improve content creation, drive operational efficiencies, and build the next generation of digital real estate user interfaces,” the company said in the release.

The company established a global operations center in Richmond in 2016 and has since grown that office to over 2,350 employees, becoming one of the area’s larger employers. CoStar announced it will complete a 1-million-square-foot campus development along the James River in May 2026 and that the campus will house 3,500 employees. In November 2024, the company announced plans to move its headquarters from Washington, D.C., to Arlington.