Zillow Abandons Flips

On September 13, Zillow Chief Operating Officer Jeremy Wacksman stated that ''We, over time, believe this can be a service that is offered to the majority, to over 50 percent of the housing stock." Wacksman was referring to Zillow's foray into house flipping. Given Zillow's unique data, it should have inside data for the housing market. Instead, Zillow has decided to abandon house flipping, laying off 25 percent of the workforce. Zillow wrote off $304 million in losses due to house flipping in the third quarter, with another $240 million to $265 million in losses to follow.