Compass hit with another round of layoffs
The New York-based brokerage disclosed its third round of job reductions in eight months.
- The job reductions are expected to be ongoing through March 31.
- In an SEC filing, Compass did not name the divisions where the layoffs will take place.
- Compass said there will be no reductions in the U.S. engineering division and that it remains committed to its new tech platform.
Compass announced another round of layoffs Thursday that will impact an undisclosed number of employees and will be ongoing through March, according to an SEC filing.
Compass described the terminations as part of "ongoing cost reduction initiatives to manage the business" during a slowdown in the real estate market and to facilitate future growth initiatives. This is the third round of layoffs at the company since June.
The company did not name the divisions where the layoffs will take place but stated that the U.S. technology engineering team will be spared.
Compass said it will continue to invest in its technology platform, which imports listings data from the MLS and is designed to help agents do their jobs better.
Reached for comment, the company declined to say anything more about the layoffs. "Our 8-K filing is the best place to get all information that is publicly available. We are not sharing or commenting beyond that," said Compass spokesman Joshua Friedlander.
Compass CEO Robert Reffkin reportedly discussed the layoffs Thursday in an email to staff.
Compass first began reducing personnel in June 2022 — when it cut 450 people, or 10% of its personnel — as the real estate market cooled due to rising interest rates and persistently high home prices. A second round of layoffs followed in September.
In this new round of job reductions, Compass estimated that it will cost $10 million to $12 million to cover severance packages and other benefits for departing employees.
In the SEC filing, Compass said that by reducing personnel, it can better manage its operating expenses, and work toward "a very specific goal" of becoming free cash-flow positive in the second quarter of 2023.
Compass also stated that it will continue to monitor economic conditions and adjust expenses as necessary.