CoStar lays off some local workers, announces a target of 1,000 new hires this year

CoStar says there will be 3,500 employees working at its Richmond campus when construction is completed next year.

Some Richmond-area employees of CoStar Group who work as content producers were informed Thursday they would be laid off, the same day the company announced a plan to add 1,000 new positions this year in the area.

A CoStar representative would not provide The Richmonder with the number of employees who were laid off.

In a press release, the company said tasks previously handled by humans will be turned over to artificial intelligence.

"The company expects to eliminate roles in 2025 from efficiencies gained by using AI and reallocate those resources into other areas," the release said. "The company also anticipates reducing some roles during normal annual performance management."

The company is building a 21-story office tower downtown that is expected to open in 2026, and said it expects to house 3,500 employees at its Richmond campus upon completion.

If CoStar meets that hiring goal, it would become the area's 10th largest employer, not counting local or state governments.

CoStar's Chief Human Resources Officer, Michael Desmarais, told the Richmond Times-Dispatch that the additions will more than offset Thursday's layoffs, which the newspaper estimated at 120 employees.

"We're hiring far more people than were let go," Desmarais said.