CoStar cuts Richmond jobs the same day it announces local hiring spree

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.